Nederlands
Many couples cohabit without marrying, entering into a registered partnership, or drawing up a cohabitation agreement with the civil-law notary. If they do not make formal agreements on their shared finances, they may find themselves in a difficult situation.
This difficult situation may be if they split up or if one of them passes away. This is a warning from the knowledge platform Wijzer in geldzaken (Money Wise Platform), which conducted a survey among more than 1,700 people in the Netherlands who cohabit.
No cohabitation agreement
Money Wise Platform asked unmarried couples who cohabit about how they arrange their financial affairs. Their research showed that:
- more than half of couples do not have a cohabitation agreement.
- most couples know the risks of cohabiting without making any agreements, but still have not arranged anything.
- only one third of couples who live in an owner-occupied home have taken steps to ensure the house will split fairly if they are no longer together.
- couples with children make more agreements and – more importantly – make a record of these agreements.
A number of risks
If couples cohabit without making a formal record of agreements, such as in a cohabitation agreement or will, then:
- the surviving partner will have to pay more inheritance tax if the other partner dies, or
- the deceased partner's inheritance will be awarded to their children instead of to the surviving partner, or
- one partner will be left homeless if the relationship ends.
How does this affect your pension?
There are also risks for your pension. If you pass away, your partner may be entitled to a partner's pension. Your partner will receive this benefit from the moment of your death for the duration of their life. If you are not married or if you have entered into a registered partnership, you must register your partner with the pension fund.
If you do not have a cohabitation agreement, most pension funds will refuse a request to register the partner with whom you cohabit. If you pass away, your partner will receive no partner's pension – and this could be a lot of money. If you would like to register your partner with our fund, log in to the Mijn Pensioencijfers (My Pension Figures) secure portal from this website to find out what you need to do.
What else can you do?
Take the test in the online tool Samen goed geregeld (Getting organised together) designed by Money Wise Platform. Answer the eight questions to receive a clear, personal statement of the risks associated with your current cohabitation set-up and what you can do to limit these risks.
Want to know more?
Read more about the research and tips on financial matters on Money Wise Platform's website.
Source: Money Wise Platform