In a previous article, we discussed the impact of a divorce on the family home. In this article, we focus on another important topic: your pension.
"}},{"componentType":"sectionTitle","title":"How does pension equalisation work?"},{"componentType":"paragraph","richBody":{"value":"When you divorce, not only the joint assets are divided, but also the pension accrued during the marriage or registered partnership [1]. The ‘equalisation of pension rights in the event of a divorce-Act’ (in Dutch: Wvps) provides that both former partners are entitled to half of the retirement pension built up during the marriage. This applies to all married couples and registered partners. The underlying idea is that you build a life together and therefore also build up a pension together. In addition, the former partner is entitled to the special survivor’s pension. This is the part of the survivor’s pension accrued up to the date of divorce.
"}},{"componentType":"sectionTitle","title":"Can you deviate from the statutory rules?"},{"componentType":"paragraph","richBody":{"value":"Yes, this is possible. Partners may agree not to apply pension equalisation or to apply a different form of equalisation (for example for a period other than the duration of the marriage, either shorter or longer). These agreements must be recorded in the prenuptial agreement or the divorce settlement.
"}},{"componentType":"sectionTitle","title":"What are the tax consequences?"},{"componentType":"paragraph","richBody":{"value":"Under the Dutch Inheritance Tax Act, a gift may arise if one partner deliberately waives a right with value, thereby giving the other partner a benefit. On 5 March 2026, the Dutch Tax Administration published a position stating that this may also apply when pension equalisation is waived in the event of a divorce. If a former partner waives their share of the pension without agreeing any other compensation, the tax authorities may regard this as a gift. The partner who receives the benefit may then be liable to pay gift tax [2] on the present value of the pension entitlement that would otherwise have accrued to the other partner.
"}},{"componentType":"actionAccordion","actionAccordionList":[{"title":{"value":"Example: Sandra (54) and Richard (57) decide to divorce
"},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"During the marriage, Sandra has accrued a retirement pension of €40,000 per year. Richard is entitled to half of this amount, being €20,000 per year from Sandra’s retirement date, for as long as she lives. Richard waives this entitlement and receives no other compensation. As a result, Sandra will receive the full pension from her retirement date. Because this is a deliberate agreement and Sandra benefits from it, the Dutch Tax Administration may regard this as a gift. The present value of the pension entitlement that Richard gives up forms the basis for the gift tax.
"}}]}]},{"componentType":"sectionTitle","title":"Be aware of the tax consequences if compensation is agreed"},{"componentType":"paragraph","richBody":{"value":"Do you agree on compensation in order not to equalise the pension (or not to do so in full)? In that case, there may be consequences for income tax. The value of the compensation is taxed in box 1 for the person who receives it. The other partner may deduct this amount as a personal allowance.
"}},{"componentType":"actionAccordion","actionAccordionList":[{"title":{"value":"Example: Richard receives compensation for waiving pension equalisation
"},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"Sandra and Richard agree that, as compensation for waiving pension equalisation, Richard will receive the surplus value of the jointly owned family home, amounting to €250,000. This amount is taxed in box 1 for Richard. For Sandra, this amount qualifies as a personal allowance.
"}}]}]},{"componentType":"sectionTitle","title":"Consider applying fiscal partnership in your income tax return"},{"componentType":"paragraph","richBody":{"value":"In the year of divorce, former partners may choose to file their income tax return as fiscal partners for the entire year. This allows deductions to be allocated to the partner who also has taxable income. As a result, the overall tax effect can be largely neutral [3]. However, a contribution under the Health Insurance Act (in Dutch: Zorgverzekeringswet) may still be due on part of the amount.
"}},{"componentType":"actionAccordion","actionAccordionList":[{"title":{"value":"Example: Sandra and Richard remain fiscal partners for the entire year
"},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"Sandra and Richard choose to remain fiscal partners for the entire year of their divorce. Richard is still taxed in box 1 on €250,000, but the personal allowance for this amount can also be allocated to him. He does, however, still have to pay a 4.85% income related contribution under the Health Insurance Act, calculated over a maximum of €79,409. This amounts to €3,851, for which he will receive a separate assessment.
"}}]}]},{"componentType":"paragraph","richBody":{"value":"A divorce involves many emotions and financial decisions. Arrangements that may seem logical can have unexpected tax consequences. It is therefore important to seek proper advice and ask your tax adviser about the various options and their implications.
"}},{"componentType":"accordion","accordionList":[{"title":"Based on the situation as of 25 March 2026","richBody":{"value":"The information provided by ING in this article is not an offer, advice, or financial service and is intended solely to inform and provide practical tips. We recommend consulting a specialist for your financial and/or wealth planning. While this article has been compiled with the utmost care, inaccuracies or omissions may occur. ING is not liable for any damage (of any kind) resulting from the use of the information provided. No rights can be derived from this information. Any rates mentioned are indicative and not binding for ING. All rights and changes reserved. This is a publication of ING Bank N.V., registered in Amsterdam.
"}}]},{"componentType":"paragraph","richBody":{"value":"[1] Whether and how assets are divided and or settled upon divorce depends on any prenuptial agreement, the applicable matrimonial property regime, and whether assets were acquired subject to an exclusion clause.
[2] For gift tax purposes, the gift tax rates of “Tariff Group 1” apply to the present value of the pension entitlement by which the former partner is enriched. These rates are 10% on the first €158,669 and 20% on the excess. The gift tax exemption amounts to €2,769.
[3] From a statutory perspective, the deduction (personal allowance) can be offset at a maximum rate of 37.56 percent, whereas the corresponding taxable amount (in box 1) may fall within the 49.5 percent tax bracket. There is relevant case law on this point in which a taxpayer was successful on appeal in 2025 and was allowed to apply the deduction at the higher tax rate. The Inspector has lodged an appeal in cassation with the Supreme Court against this decision. The Supreme Court has not yet ruled on this matter.
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