Pension Equalization – Fair Division of Retirement Benefits After Divorce
As part of divorce proceedings in Germany, the pension entitlements acquired by both spouses during the marriage are divided between them. This process is known as pension equalization.
Typically, each spouse contributes to their retirement in different ways – whether through the statutory pension system, company pension schemes, or private retirement plans. To ensure a fair outcome, the law mandates that all pension entitlements accrued during the marriage are split 50/50.
In many cases, one partner has significantly fewer pension entitlements. This is often due to career breaks for childcare, part-time work, unemployment, or differences in employment sectors – for example, if one spouse works in public service.
Pension equalization corrects these imbalances. The Legal Foundation for this is the German Pension Equalization Act (VersAusglG). It ensures that both spouses leave the marriage with equitable pension rights, reflecting the idea that marriage is not just a partnership, but a joint financial and retirement unit.
Please note: In international marriages, pension equalization is not automatically carried out during the divorce proceedings. It only applies if the foreign legal system recognizes pension equalization or if one of the spouses files a formal request. I will gladly review your specific case and clarify whether and how pension equalization applies.
If you are navigating a divorce and wondering how pension entitlements will be handled in your case, I’m happy to advise you individually and explain your specific rights and options.