The German government proposes reforms to improve the equalization of pensions in case of divorce, ensuring a fair distribution of pension rights.

The German government intends to reform the regulations regarding the equalization of pensions in case of divorce, to ensure a fair settlement of pension rights accumulated during the marriage. The Federal Ministry of Justice has proposed a bill that has been approved by the Federal Cabinet.

Although the basic principle of pension equalization is already in force, in practice, issues related to the complete disclosure of claims have led to financial inequalities. The reform will allow for the subsequent compensation of previously unaccounted pension rights, including company pensions and hidden claims.

Additionally, lump-sum payments will be taken into account, and very small pension rights will no longer be settled if the costs exceed the benefits. The deadline for retrospective review will be extended to two years before retirement.

These changes could bring significant financial benefits for divorced individuals, especially for those with lower incomes or who have been temporarily unemployed. The bill must be voted on by the Bundestag to come into effect.