Alimony is one of the most important financial topics in a divorce. Whether you need to pay alimony or are entitled to receive it, it is essential to understand how the Dutch system works. In this article, we explain how spousal maintenance and child support are calculated, how long the obligation lasts, and what factors play a role in the determination.
What is alimony?
Alimony is a legal obligation to contribute to the maintenance of your ex-partner (spousal maintenance) or your children (child support). The basis for alimony is established in Book 1 of the Dutch Civil Code (BW). Article 1:157 BW regulates spousal maintenance, while article 1:404 BW establishes the maintenance obligation for children. The starting point is that both parents are responsible for the costs of care and upbringing of their children.
How long does spousal maintenance last?
Since January 1, 2020, the Dutch Spousal Maintenance Reform Act applies. The main rule is that the maintenance duration equals half the duration of the marriage, with a maximum of 5 years. However, there are three exceptions to this rule. First: if the marriage lasted longer than 15 years and the maintenance recipient reaches the state pension age within 10 years, maintenance continues until the state pension age. Second: if there are children under 12, maintenance continues until the youngest child turns 12. Third: for recipients born on or before January 1, 1970, where the marriage lasted more than 15 years, a maximum duration of 10 years applies.
How is alimony calculated?
The calculation of alimony is based on two pillars: the need of the recipient and the financial capacity of the payer. The need is determined based on the standard of living during the marriage, often calculated using the so-called Hof norm (60% of net family income). The financial capacity is determined by the income of the payer, reduced by necessary expenses such as housing costs, health insurance, and any debts.
For child support, the costs of children are calculated using NIBUD tables. These tables take into account the net family income and the number of children. The costs are then divided between both parents in proportion to their financial capacity. Child support always takes precedence over spousal maintenance: only after child support has been determined is it assessed how much remains for spousal maintenance.
Can alimony be modified?
Yes, alimony can be modified if there is a change of circumstances (article 1:401 BW). Think of income loss due to dismissal, a new relationship of the recipient, or cohabitation with a new partner. In the case of cohabitation, spousal maintenance even ends definitively under article 1:160 BW. A modification request must be filed with the court, unless you can reach new agreements together through mediation.
Tax consequences of alimony
Spousal maintenance is tax-deductible for the payer and is taxed for the recipient. This means the net burden for the payer is lower than the gross amount, while the recipient pays income tax on it. Child support is not tax-deductible and is not taxed for the recipient. It is wise to include the tax consequences when calculating alimony to get a realistic picture of the net amounts.
Tips for arranging alimony
It is strongly recommended to seek professional legal advice when determining alimony. A specialized family law attorney can help you calculate the correct amounts, draft an alimony agreement, and file a request with the court. At Advocaat bij Scheiden, we are happy to assist you with expert advice on alimony and all other aspects of your divorce.