Do you already have it, are you still planning it or is it not even an option for you? It is summer, according to reports and statistics, in addition to the merry month of May, the summer months are very popular for weddings. According to reports, a particularly large number of weddings also take place on Schnapszahl dates, for example August 8, 1988 was very popular with 1954 weddings, but December 12, 2012 was less so. I myself am an absolute stereotype, which the Federal Bureau of Statistics would be happy about – we got married on August 8 years ago.
Perhaps, like me, you were married a long time ago, are currently planning or have decided that getting married now or later is not an option. For all romance, there are some financial aspects to consider when making this decision, in addition to choosing the date. Here I have summarized some of the key points for anyone currently dealing with the subject and form of their partnership.
When you get married, your income and assets are added together. This leads, despite efforts by individual cantons to absorb the impact of federal taxes in particular, to a higher tax burden, especially for married two-income households. The consolidation is for the year you get married, so if you get married in December, you’ll pay taxes for that year as well. In the case of inheritances and gifts, you as a couple are exempt or privileged from tax in all cantons.
Registered partnerships are already taxed like marriage partnerships. If you decide to convert your registered partnership into a marriage, nothing will change for you.
As a cohabiting couple, you are taxed individually. On the other hand, inheritances and gifts can sometimes lead to high tax consequences, especially if you have children or assets together. Individual cantons provide for preferential taxation.
There are a number of factors that you need to take into account when it comes to pension provision, because the form of partnership affects both the AHV pension and your occupational pension and Pillar 3a.
A pension for you as a couple is calculated on the wages of both spouses, but will not exceed 150% of the maximum individual pension. This has advantages if your incomes are very different, for example due to part-time and care work. Then the person benefits from the higher income of the other. In the event of your death, you are entitled to a widow’s pension and, in the case of couples with children, to a supplementary orphan’s pension. The same rules also apply to couples in a registered partnership.
If you live together, as a couple you will receive a maximum of 200%, calculated according to individual wages. For example, if one partner works part-time, he/she cannot benefit from the other partner’s higher income. In the event of death, there is no entitlement to a widow(s) pension. Only an orphan’s pension is paid to one’s own children (up to the age of 18 or 25, if they are teaching).
Whether you are married or cohabiting, you both pay into the pension fund if you are employed and meet the requirements (minimum wage BVG of CHF 22,050 per annum). This is different for the self-employed, depending on whether or not you are affiliated with a pension fund. At the pension fund, the main differences between marriage and cohabitation are in the benefits in the event of death and divorce.
In a marriage, the money in the pension fund belongs to both of you. In the event of a divorce, the assets of the pension fund are divided. In the event of death, the second pillar guarantees a survivor’s pension if he/she has dependent children, is older than 45 and has been married for at least five years. The regulations of the pension fund can adjust these criteria in favor of the next of kin. Divorced persons are also entitled to a pension from the pension fund under certain conditions.
If a partner a acquired benefit account leaves, the bank or insurance company pays the amount to the surviving spouse in one go. Orphans or divorced spouses are also beneficiaries, provided they have a right.
If you live together, the accrued credit will not be divided upon divorce. If there’s a death, he’s lying in the opinion of the pension fund about whether or not to pay a survivor’s benefit. The pension foundation can make benefits in the form of partner’s pension or capital deduction. The regulations of the pension fund and the required preconditions are decisive, for example that there must have been at least five years of uninterrupted cohabitation until just before the death. This arrangement also applies to a common child for whose maintenance the surviving spouse must pay. In addition, cohabitation must be registered with most pension funds. In any case, it is worthwhile to obtain accurate information from the pension fund about the conditions and requirements.
If there is freedom of movement, then there is the possibility for cohabiting couples to benefit each other in the event of death. You must inform the benefits agency of this in writing.
If you are married, you can insist on a division of property under Pillar 3a in the event of a divorce, provided that you have not agreed on a separation of property and the money does not consist of pre-marital savings or inheritances. In the event of death, the spouse will be eligible for the money first, followed by the other legal heirs.
Pillar 3a is not shared for cohabiting couples. However, there are certain conditions under which a claim can be made on the death of a partner, for example if you lived together five years prior to the death of the deceased or if you have children to support you. For example, you can also protect yourself with a life insurance policy, since the order of the beneficiaries can be chosen freely there.
As you can see, the partnership form has all kinds of effects on your finances, especially in terms of taxes, but also on provisions and security. Definitely worth being informed about. For example, if you are living together and forging a family, additional securities and a cohabitation contract, inventory, living will and will are definitely worth checking. Expert advice can be very helpful in this to set you up optimally.
How do you experience the collaboration? Living together or getting married, what tips do you have that you should definitely look at?
Source: Watson
I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.
