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The way in which both assets and occupational pensions are divided up in the event of a divorce can be complex. However, the topic is highly relevant for women because in Switzerland, far more women work part-time than men. In addition, one in four women in Switzerland is not insured with a pension fund and is therefore worse off in terms of retirement��savings.

Proactively managing your retirement savings��– especially if you and your partner are going your separate ways – is essential for a secure future.����

Deepen your knowledge with the following four questions and answers:��

1. What happens to pension fund assets in the event of a divorce?����
2. You withdrew assets from a pension fund to purchase residential property. What happens to them?����
3. You have a��prenuptial agreement with separation of property. What does this mean for the division of pension fund assets?�� ����
4. What’s the best way to make sure you are financially secure in retirement?��

In principle, both parties are entitled to half of the amounts paid in during the marriage and until they file for divorce. This applies regardless of whether your own pension fund contributions were lower than those of your spouse. It is also irrelevant whether one of you temporarily worked��part-time or stopped working altogether to care for the children or could not pay into their own pension fund due to illness.��

When calculating the pension equalization in pillar 2, all pension assets from both parties are included, including advance withdrawals for the purchase of owner-occupied residential property and voluntary payments into the pension fund.��

Once the sum for pension equalization within pillar 2 has been determined and recorded in the divorce agreement, the sum is transferred from the pension fund of the party liable for equalization to the pension fund of the party entitled to equalization in a tax-neutral manner after the divorce. If the person entitled to equalization is not affiliated with a pension fund at the time of the pension equalization, the transfer is made to an existing vested benefits account or to a new one to be opened.�� ��

Read more about the subject in our article “Vested benefits account – park your pension fund assets safely”.��

If assets were withdrawn from a pension fund for the purchase of owner-occupied residential property, this amount is taken into account in the calculation of the pension equalization. The decisive factor is whether one of the two spouses takes over the property after the divorce. If they do, the amount withdrawn can be included in the calculation of the compensation, as it is part of the pension assets saved during the marriage.��

You can find more information on the topic of property and divorce in the article “Divorce and your mortgage: the best solution”.��

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A marriage contract with separation of property only stipulates how the assets are divided between the spouses in the event of divorce or death. It does not influence pension funds.��

The pension fund assets (pillar 2) that were accumulated during the marriage are divided according to the law in the event of a divorce – usually 50/50. This applies regardless of whether separation of property was agreed upon.��

In the event of a divorce, pension gaps can arise in the pension fund, which will result in lower retirement benefits upon retirement. Longer life expectancy and lower savings contributions in pillar 2 due to lower average wages or part-time work can also place an additional burden on women’s future retirement benefits, depending on the situation.��

In order to be able to maintain the desired standard of living in old age, women in particular must therefore start planning their retirement at an early stage and use all three pillars for retirement provision – the OASI, the occupational pension fund and private retirement savings – in their own pension planning.����

Read our article “How to plan your retirement as a woman” and ask our experts.����