Marriage, children, divorce: how life events change your finances
March 24, 2025
7 min read
arvy's Teaser: You get married, have a child, or — maybe — separate at some point. Each of these life events has massive financial consequences: taxes, pension provision, matrimonial property law, inheritance law, child benefits. Most couples only think about this after it's happened. This guide helps you think ahead.
40%
Marriages in Switzerland end in divorce
50:50
Pension fund split in divorce — regardless of property regime
0%
Inheritance tax for spouses (almost all cantons)
Part 1: Getting Married
Taxes: Marriage penalty, marriage bonus — and what changes
In Switzerland, married couples are taxed jointly. Your incomes are combined, and the progressive tax rate is applied to the total. This has two effects:
| Marriage Penalty 😤 | Marriage Bonus 🎉 | |
|---|---|---|
| When? | Both earn similar amounts | One partner earns significantly more |
| Example | Each CHF 100k → CHF 200k → higher progression | CHF 180k + CHF 40k → couple tariff reduces tax |
| Magnitude | CHF 1,000–6,000+ more/year | CHF 500–4,000 less/year |
Tip for dual earners: Use the dual-earner deduction. At federal level: 50% of the lower income (max. CHF 14,100). Canton Zurich: max. CHF 5,900 from the lower income.
Matrimonial property regime: The underestimated topic
Without a marriage contract you automatically live under the participation in acquired assets (Errungenschaftsbeteiligung) regime:
The three matrimonial property regimes
1. Participation in acquired assets (default without contract): What you earn and save during the marriage = acquired assets → split 50:50 at divorce or death. What you bring in or inherit = separate property → stays with you.
2. Community of property: Everything belongs to both → rarely chosen, high liability risks.
3. Separation of assets: Each partner keeps their assets completely. Protects entrepreneurs and partners with very different wealth. Important: Does NOT protect against pension fund division at divorce.
"Most couples don't know what matrimonial property regime they're living under. It's like signing a contract without reading it."
Pension provision: What marriage changes
Pension fund: Your spouse is automatically registered as beneficiary. On your death, they receive a surviving spouse pension (usually 60% of your retirement pension). Unmarried: no automatic entitlement — you must actively register your partner.
AHV: Married couples together receive a maximum of 150% of the individual pension (capped). Two single individuals receive 100% each.
Pillar 3a: Each spouse can maintain their own 3a account and deduct the full amount (CHF 7,258 with pension fund). As a couple: 2× CHF 7,258 = CHF 14,516 in annual tax deductions.
Inheritance law: Why you need a will
Without a will, your spouse inherits 50% of the estate (the other half goes to your children). Under the new inheritance law (since 1.1.2023) the compulsory portions for descendants were reduced from 3/4 to 1/2 — giving couples more flexibility to protect each other.
Unmarried without a will: Your partner inherits nothing. And even with a will, inheritance tax for non-relatives can be up to 50% depending on the canton. Marriage offers a massive financial advantage here.
Part 2: Children
Child benefits
| Benefit | Federal minimum | Zurich | Geneva |
|---|---|---|---|
| Child benefit (ages 0–16) | CHF 200/month | CHF 200/month | CHF 311/month |
| Education benefit (ages 16–25) | CHF 250/month | CHF 250/month | CHF 415/month |
Important: Child benefits are taxable income. They are added to your salary.
Childcare costs: The biggest tax deduction for families
External childcare costs CHF 2,000–2,500/month per child in urban nurseries. Tax deductions can partially offset this:
Childcare deductions
Federal tax: Max. CHF 25,500/child/year for external childcare (raised 2023)
Cantons: Vary greatly — Zurich max. CHF 10,100/child
Child deduction federal tax: CHF 6,600/child
Example: Couple in Zurich, child in nursery (CHF 24,000/year), taxable income CHF 180,000 → combined deductions: CHF 3,000–5,000/year tax savings.
Pension strategy as parents
The part-time risk: The biggest pension trap for parents
Reducing from 100% to 60% doesn't just cut 40% of salary — it often cuts pension fund contributions disproportionately. The coordination deduction (CHF 25,725) is subtracted from the full salary. At CHF 60,000 (60% position), only CHF 34,275 is insured. At CHF 100,000 it would be CHF 74,275. Over 20 years: a pension gap of CHF 100,000–300,000 in the second pillar.
What couples should do:
1. Both continue contributing to 3a. Even part-time employees with income can deduct the full 3a amount. As a family: 2× CHF 7,258 = CHF 14,516/year.
2. Check pension fund buy-in for the part-time partner. Reducing hours usually creates buy-in potential — simultaneously pension provision AND tax optimisation.
3. AHV child-rearing credits. For each year raising children under 16, a fictitious credit (currently CHF 44,100/year) is recorded on your AHV account — split equally between spouses.
4. Cohabitation agreement for unmarried parents. Without marriage, the caregiving partner has no entitlement to the other's pension fund. Only ~5% of cohabiting couples have such an agreement.
What a child actually costs
Direct costs in Switzerland: average CHF 1,200–1,800/month per child. Over 18 years: CHF 260,000–390,000 per child. The indirect costs (reduced hours, lower pension, missed career steps) are often even larger.
Part 3: Divorce
Around 40% of marriages in Switzerland end in divorce. A divorce is not only emotionally but financially one of the biggest disruptions — affecting taxes, pension fund, AHV, and inheritance.
What gets divided?
1. Property regime: Acquired assets are split
Without a marriage contract (participation in acquired assets): everything earned and saved during the marriage is split 50:50. Separate property (pre-marriage, inheritances) stays with each partner. With separation of assets: no automatic division.
2. Pension fund: 50:50, without exception
The pension fund balance accumulated during the marriage (from wedding day to filing of divorce petition) is split equally. This applies regardless of the matrimonial property regime — separation of assets provides no protection here. Since 2017, the split also applies when a partner is already retired and receiving a pension.
3. AHV: Income splitting
The AHV incomes earned during the marriage are split equally. Apply to the AHV compensation office after the divorce. Directly affects your future AHV pensions.
4. Pillar 3a: According to property regime
Under the default regime: the portion saved during the marriage is split 50:50. With separation of assets: no division. In practice, settlement is often made from free assets rather than splitting accounts directly.
Example: What a divorce after 15 years means
Anna (100%, CHF 120k): pension fund balance CHF 450,000, of which CHF 380,000 during marriage.
Marco (60%, CHF 60k): pension fund balance CHF 180,000, of which CHF 140,000 during marriage.
Difference: CHF 240,000 → Anna transfers CHF 120,000 to Marco's pension fund.
Anna after: CHF 330,000 · Marco after: CHF 300,000
Plus: property division, AHV splitting, possibly maintenance payments.
Cohabitation: Separation without protection
Warning: No legal protection for cohabiting couples
🔴 No pension fund division at separation — the partner who reduced hours gets nothing
🔴 No AHV income splitting
🔴 No legal inheritance rights without a will
🔴 No surviving spouse pension (unless actively registered with the pension fund)
🔴 High inheritance tax of 20–50% depending on canton
A cohabitation agreement governs how assets, pension provision, and childcare costs are divided at separation. Only ~5% of cohabiting couples have one — despite being essential, especially when children arrive and one partner reduces hours.
Closing pension gaps after divorce
Pension fund buy-in: Divorce often creates gaps in the second pillar. Fully tax-deductible. Importantly: the 3-year lock-up rule does not apply to re-buy-ins after divorce.
Top up 3a: From 2026 you can retroactively make up missed 3a contributions — ideal for closing gaps from years with reduced income.
Overview: Marriage vs. cohabitation
| Topic | Marriage | Cohabitation |
|---|---|---|
| Taxation | Joint | Separate |
| Inheritance (without will) | 50% to spouse | 0% to partner |
| Inheritance tax | 0% (most cantons) | Up to 50% |
| PF surviving spouse pension | Automatic (60%) | Only if registered |
| AHV surviving spouse pension | Yes | No |
| Pension fund split at separation | 50:50 by law | No entitlement |
| AHV income splitting | Yes | No |
| Naturalisation (Swiss partner) | Facilitated (3 yrs) | No advantage |
Your checklists
✅ Before getting married
☐ Tax simulation: will you pay more or less as a couple? (use ESTV tax calculator)
☐ Discuss matrimonial property: is the default regime OK, or do you need separation of assets?
☐ Create a will
☐ 3a: both partners contributing? Check maximum amounts
☐ Review pension fund beneficiary designation
✅ When a child arrives
☐ Discuss hours allocation — calculate financial consequences (pension gap!)
☐ Apply for child benefits (employer)
☐ Budget childcare costs → plan tax deduction
☐ 3a: both continue contributing — including the part-time partner
☐ Check pension fund buy-in for the partner reducing hours
☐ For cohabiting couples: create or update cohabitation agreement
☐ Update will
✅ At divorce / separation
☐ Order pension fund statements (both partners) — balance at wedding date and at divorce filing
☐ Open vested benefits account if no new employer (→ Vested Benefits Guide)
☐ Apply for AHV income splitting after final divorce
☐ Calculate pension gaps: pension fund buy-in possible?
☐ Make up 3a gaps (retroactively possible from 2026)
☐ Rebuild budget as an individual
☐ Update will
Frequently asked questions
What is the marriage penalty (Heiratsstrafe) in Switzerland?
When both partners earn similar amounts, married couples often pay CHF 1,000–6,000+ more in taxes per year than an unmarried couple due to joint progressive taxation. With very different incomes, a marriage bonus applies (CHF 500–4,000/year less). Switzerland voted in March 2026 on individual taxation, which would eliminate the marriage penalty.
How is the pension fund split in a Swiss divorce?
The pension fund balance accumulated during the marriage is split 50:50 — regardless of the matrimonial property regime. Even separation of assets doesn't protect against this division. Waiver is only possible if both partners have adequate independent pension provision and the court agrees.
What is the coordination deduction and why does it affect part-time workers?
The coordination deduction (CHF 25,725, 2026) is a flat deduction from the gross salary — not proportional to the employment rate. Working 60% at CHF 60,000 leaves only CHF 34,275 insured. Working 100% at CHF 100,000 gives CHF 74,275. This means disproportionately lower pension fund contributions for part-time workers. The 2024 BVG reform gradually reduces this deduction.
What happens if I die without a will as a cohabiting couple?
Your unmarried partner inherits nothing by law. And even with a will, inheritance tax for non-relatives is 20–50% depending on the canton. A will is therefore absolutely essential for unmarried couples. A cohabitation agreement is additionally recommended to govern the division at separation.
Life events change everything. Your pension should keep up.
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Disclaimer: General information only. Not legal, tax, or investment advice. Family, property, and inheritance law is complex and varies by canton. arvy is an asset manager supervised by FINMA. As of April 2026.
