2nd pillar and divorce: how the split really works.
In a divorce, LPP assets accumulated during the marriage are split. Here is the mechanics of the split, the deadlines, the exceptions, and common pitfalls.
When a couple divorces in Switzerland, the occupational pension assets accumulated during the marriage are split equally — unless agreed otherwise. This is a rule of economic equivalence set out in articles 122 to 124e of the Swiss Civil Code. Here is how it applies in practice.
What is split, and what is not
| Status | Assets concerned |
|---|---|
| Included in the split | LPP assets (mandatory + extra-mandatory) accumulated during the marriage, in every pension fund and vested benefits foundation |
| Excluded from the split | Assets accumulated before the marriage. Assets received by gift or inheritance during the marriage. AVS (1st pillar). 3rd pillar 3a (unless otherwise agreed in the marriage contract) |
Note: the 3rd pillar 3a is not part of the LPP split, but it is part of the marital acquests to be liquidated in the ordinary divorce procedure (unless separation of property applies). A slightly different regime.
The procedure
The LPP split runs in parallel with the divorce proceedings. Allow 6 to 18 months depending on complexity and the court involved.
Request statements from the funds
4-6 weeksEach spouse asks all their funds (active + vested benefits + former employer if assets were not transferred) for a statement of holdings at the key dates: date of marriage and date of divorce filing. No statements, no calculation.Calculate the difference in gain
~1 weekAsset difference = (assets at divorce − assets at marriage), for each spouse. The spouse with the larger gain owes half of the difference to the other, or vice versa.Agreement or court ruling
VariableEither the spouses agree on the split and the court approves it (faster procedure). Or the court decides in case of disagreement (contested procedure). In all cases, the ruling specifies which amount and to which fund.Notification to the funds
~2 weeksThe court notifies the ruling to the funds concerned. The funds then have 12 months to execute the transfer.Actual transfer
4-12 monthsThe debtor fund transfers the amount directly to the creditor fund. If the recipient is no longer insured (between jobs, abroad), a vested benefits account is opened to receive the funds.
A concrete worked example
Marc had CHF 80,000 at the time of marriage, CHF 320,000 at divorce. Elise had CHF 30,000 at marriage, CHF 140,000 at divorce.
- Marc's gain during the marriage
- CHF 240,000
- Elise's gain during the marriage
- CHF 110,000
- Gross difference
- CHF 130,000
- Compensation owed by Marc to Elise
- CHF 65,000 50% of the difference
- Marc's assets after split
- CHF 255,000 CHF 320,000 − 65,000
- Elise's assets after split
- CHF 205,000 CHF 140,000 + 65,000
Partial or total refusal of the split
CC article 124b provides that the court may refuse or limit the split if strict application of equality would be "manifestly inequitable". Concrete cases recognized by case law:
- One spouse gave up professional activity for the household during the marriage and the other financed their own pension with shared income (rare as grounds for total exclusion, but possible as mitigation).
- One spouse has already received equivalent compensation through other means (real estate, wealth, etc.).
- The "creditor" spouse seriously breached marital duties (exceptional case, courts very strict).
Tax impact of the split
Transferring LPP assets between funds in a divorce is tax-neutral:
- No tax at the time of transfer.
- No withholding tax.
- Transferred assets retain their seniority for future withdrawal calculations.
Tax only applies on the final withdrawal by each spouse (retirement, home purchase, departure, self-employment). See our cantonal tax comparison.
The trap of forgotten assets
The split calculation relies on statements from every fund. If one spouse has forgotten a pension fund from a former employer, or a vested benefits account transferred to the supplementary institution (Central 2nd-Pillar Office in Berne), these assets will not be included in the calculation. The split will then be incomplete.
Deadlines not to miss
- Statements at marriage: request early, some funds take time. Former employers can be slow to respond.
- Notification of the ruling: the court handles it, but check that all funds are properly notified (not only the main one).
- 12-month deadline to execute the transfer: if the fund delays, you must follow up; beyond that, request intervention from the supervisory authority.
- 01Equal split of the LPP asset difference accumulated during the marriage (CC art. 122).
- 02Assets before marriage and received as gift/inheritance = excluded.
- 03Transfer between funds tax-neutral — tax only applies at the final withdrawal.
- 04An accurate calculation requires every fund statement — do not overlook vested benefits at former employers.
To understand how to read the pension certificate that underlies the statements, see our guide. For the case of death (the other situation where assets change hands), our dedicated article. For taxation of the final withdrawal, the cantonal comparison.