divorce and separation

Transcription

1 divorce and separation Comprehensive support with the settlement of your affairs

2 Things hadn t been right between us for years, really. There wasn t anyone else, but the love was gone. Fortunately, we both felt the same. Without us noticing, we started to get more and more irritated with each other. The atmosphere wasn t good, and the children sensed it. They notice a lot more than adults sometimes think. A few weeks ago, we decided we couldn t go on the way we were. It was very emotional. After all, we used to be in love, we had children, we lived together for years. Yet it was also a relief. A chance to make a fresh start. Although we do have our rows, we said to each other from the start: we re going to settle our affairs sensibly. Not only because that is best for us but, more importantly, because we owe it to the children. We ve seen friends go through bitter breakups, fighting over everything. We really do not want to go down that path. The bank referred us to a specialist advice service called Scheidingsexpert. The bank and Scheidingsexpert work closely together, so the divorce and our banking affairs can be settled at the same time. There are difficult times ahead, but I m sure that, with the expert support we are getting, we ll come through the other side.

3 comprehensive support with the settlement of your affairs What next? Your next step depends on your circumstances. 04 Who does what when a couple separate? The advisors at ABN AMRO and Scheidingsexpert are at your service. 06 What action should you take? The process, step by step. 10 Useful information Tips for settling your affairs. 14 Advice and support Contact us any time. 16

4 4 The legal status of your relationship influences much of what you need to do. what next? If you and your partner split up, you will have a lot on your plate. At a time when you re likely to be feeling overwhelmed, you will have to arrange all sorts of things and make some very important decisions. Where will each of us live, and where will the children be? What about our finances? Will I have to work more? Who will arrange the separation? What will happen to our bank accounts and insurance policies? How will we divide up our assets? Making arrangements and decisions at an emotionally turbulent time may be challenging, but it cannot be avoided. It is therefore important to take a practical and careful approach, and get expert advice in good time. Talk to an advisor as soon as possible It is a good idea to get in touch with an ABN AMRO advisor at an early stage, so that you have a clear overview of your financial situation and what you need to do. Expert guidance can be very reassuring in a difficult time. What you need to do depends partly on the legal status of your relationship. Other key factors are whether you and your partner have children together, whether you rent or own your home and how many of your bank accounts and insurance policies are in joint names. Are you living together but not married? If you live together without being married and you have children, you are legally obliged to make a parental plan : an agreement about how the children will be cared for. If you do not have children, you and your partner can simply go your separate ways there are no legal rules you are obliged to follow. In practice, however, this is not always as straightforward as it sounds. Disputes can arise over details of your cohabitation contract, for example, or about the home you share. It is therefore very important to get good advice and carefully record the things you agree. If your banking arrangements need to be changed, your ABN AMRO advisor will be pleased to help. Are you married or in a registered partnership? Divorcing or separating from a registered partner usually involves having your relationship formally ended by a court. The only exception is if you are in a registered partnership and you do not have children together. In that case, you can separate without going to court, as long as the two of you agree to the split. A court can formalise a divorce or separation on the basis of a joint petition by you and your partner. Alternatively, a court can rule on a contested divorce or separation, where each side is represented by a lawyer who seeks the best possible outcome for his/her side. It may be possible in the future for couples without children to divorce outwith the court. It is not yet known when this law will be passed. For the most up to date information check the website abnamro.nl/scheiden or ask your bank advisor. International aspects of divorce Were you married in another country? Are either you or your partner non-dutch or does one of you live abroad? If so, the international aspects of your divorce will need to be considered. And, unfortunately, the divorce is likely to be more complicated. In the case of an international divorce, the first step is always to find out which matters

5 5 you can take care of in the Netherlands and which you cannot. It is possible that maintenance payments, the division of assets, pension entitlements or child care arrangements will have to be dealt with in the other country. Some things may be covered by Dutch law, while others are covered by foreign law. It is therefore important to look at each matter separately when considering the implications. ABN AMRO and Scheidingsexpert can guide you through this complex process and help you understand your options. If you do not speak Dutch, your ABN AMRO advisor and your separation counsellor can advise you in your own language or arrange for an interpreter. amicable separation/divorce contested separation/divorce you and your ex make the decisions costs are manageable reasonably quick process arrangements can be made for the future no need to attend court (documentary process) everything settled in one go the judge makes the decisions costs are high lengthy process no arrangements can be made for the future both partners have to go to court (oral process) several procedures needed

6 6 The right advisor at the right time. the advisors at ABN AMRO and Scheidingsexpert are at your service ABN AMRO works with Scheidingsexpert Nederland to provide advice and mediation on divorce and separation. If you wish, your ABN AMRO advisor and your separation counsellor can guide you through the entire process and arrange all aspects of your divorce or separation. Your ABN AMRO advisor helps you understand the financial implications Your advisor will be pleased to help you sort out your financial and insurance affairs. What joint products do you and your partner have with us? How do you want each to be handled? If you wish, in certain cases you can apply for particular products right after talking to the advisor. So you could have a new payment account or savings account set up before you leave. In most cases, however, you will have to wait until you and your ex have made definite arrangements about the separation. Your ABN AMRO advisor can refer you to Scheidingsexpert on a noncommittal basis. If, by the time you talk to the advisor, a separation covenant has already been signed or a court has formalised your divorce, the advisor can help you put the settlement into practice. He or she will also go through your new situation with you, so that all your banking affairs are back in order. Scheidingsexpert offers mediation and resolution On request, your separation counsellor can arrange all aspects of your divorce or separation, including the court process. Everything will be done in consultation with you and your partner, and in a way that respects both your interests. All the separation counsellors at Scheidingsexpert are qualified family mediators, registered with the Netherlands Mediation Institute (NMI) and the Divorce Finance Consultants Register. Using a unique computer model, your expert can show you how separation will affect you financially. This will enable you to make sound decisions about your future and that of your children. ABN AMRO and Scheidingsexpert work together to ease your worries at a difficult time Divorce and separation can raise a lot of different issues, requiring the advice of various professionals. Dealing with so many people is an extra headache at what is always a challenging time. Your ABN AMRO advisor and your Scheidingsexpert separation counsellor work as a team, to simplify the process. With your agreement, they will liaise with each other throughout your separation and dovetail their advice. Naturally, they will also keep you informed every step of the way. By working in tandem, ABN AMRO and Scheidingsexpert can give you immediate feedback on the financial viability of plans concerning things like your shared home. And they will ensure that what you agree is recorded in detail in your separation covenant. To save you acting as a go-between, your separation counsellor will pass the necessary information directly to your ABN AMRO advisor. Then, once the split is complete, the advisor can set up the accounts and other services you need, and give you appropriate advice. Visit abnamro.nl/scheiden for further information (in Dutch).

7 7 Would you like to know more about Scheidingsexpert? Visit scheidingsexpert.nl/abnamro or call (088)

8 8 The right advisor at the right time. If you bought your home together If you and your partner have agreed that he or she will take over both the home and the mortgage, the transfer has to be formalised by a public notary. It is also important that you discuss the transfer with your bank or mortgage advisor and that it is recorded by the mortgage lender. Otherwise, you will remain jointly responsible for paying the outstanding mortgage debt. Alternatively, the two of you may decide to sell the home you shared. In that case, if you married in community of property or were in a registered partnership, the value of the home forms part of your joint property (assets and liabilities), which must be divided between you. If your divorce or separation is arranged by Scheidingsexpert, your separation counsellor and your ABN AMRO advisor will, on request, organise the division of property for you. If the home will be transferred to sole ownership Suppose that you and your partner bought a house together. If your partner wants to continue living there after the split, he or she will need to buy your half of the house. Because the mortgage will then be in your partner s name only, the mortgage deeds will need changing. You will also have to obtain formal discharge from your shared liability because, in law, you are jointly and severally liable. This means both of you are responsible for full repayment of the mortgage debt. What do you need in order to obtain formal discharge from your shared liability? Normally, before applying for discharge from your shared liability, you first need a finalised or draft separation covenant. However, if Scheidingsexpert is guiding you through your separation or divorce, you can ask for the discharge before you have a separation covenant. Your bank advisor will consider the request on the basis of the principles for the separation covenant he receives from your separation counsellor at Scheidingsexpert. When considering the request, ABN AMRO will assess whether the mortgage will be affordable for your partner on a stand-alone basis. If the request is approved, we will immediately prepare a quote for you and start processing your application. If the application cannot be approved, your separation counsellor will immediately help you look for an alternative solution. The separation covenant will only be drawn up once everything is arranged, on the basis of the principles that you ultimately agree. This approach means that your separation covenant is always workable and you both know just where you stand as soon as possible. Your bank advisor will be pleased to provide detailed guidance. ABN AMRO and Scheidingsexpert remain at your service even after the split If circumstances change, new issues can arise concerning the financial and other arrangements made at the time of your divorce or separation. Potentially significant developments include a change in your income, moving to a new address or setting up home with a new partner. In the event of a change, further support and advice will always be available from your ABN AMRO advisor and your separation counsellor. The latter will talk to you and your ex, with a view to heading off any possible disputes concerning the changes needed to the separation covenant. The revised arrangements will then be recorded for you in a supplementary covenant. Your ABN AMRO advisor will guide you on any changes to your banking affairs that may be required, and will make the necessary arrangements.

9 9 Subsidised legal aid is available for mediation services If your income and assets do not exceed specified ceilings, you may qualify for subsidised legal aid for mediation. If you qualify, your separation counsellor will tell you what your entitlements are and make the necessary arrangements. For information about subsidised legal aid, visit rvr.org.

10 10 We can guide you through your divorce or separation and help you put your banking affairs in order. what action should you take? Get expert advice Clarify your financial circumstances Make the separation or divorce official Amend existing banking products and/or apply for new ones Finally, a few things you must not forget You decide to separate Make an appointment to see your ABN AMRO advisor Your ABN AMRO advisor explains the divorce or separation process Your ABN AMRO advisor arranges for Scheidingsexpert to contact you on a noncommittal basis Your ABN AMRO advisor can arrange certain banking products for you right away Your separation counsellor discusses the financial, legal and tax implications with you Your separation counsellor indicates possible solutions that meet your wishes On request, your separation counsellor liaises with your ABN AMRO advisor about solutions Your separation counsellor draws up the separation covenant Your separation counsellor submits the divorce petition to the court and arranges for it to be recorded in the public register At your request, your separation counsellor informs your ABN AMRO advisor about what has been agreed Your ABN AMRO advisor advises you about your products and services and arranges any changes you require Check whether everything is in order for your own financial future Inform relevant organisations and public bodies about your changed circumstances

11 11 Step 1: Get expert advice Have you decided to divorce or separate? If so, you are welcome to discuss the situation and the rearrangement of your financial affairs with an ABN AMRO advisor. It is important to seek expert advice at an early stage. Getting advice can be reassuring and reduces the risk of a contested divorce. Your ABN AMRO advisor will explain what lies ahead, so you know where you stand. If you wish, your ABN AMRO advisor will arrange for Scheidingsexpert to contact you on a noncommittal basis to talk about guiding you through the process. Step 2: Clarify your financial circumstances When you separate, any joint assets and debts must be divided. If you are living together without any kind of formal agreement, the division of assets and debts will have to be arranged by negotiation. With your permission, your ABN AMRO advisor will inform your separation counsellor about your current banking affairs saving you a lot of trouble. Next, your separation counsellor will explain your options. Would it make sense to transfer the house and mortgage to your name, for example? And if so, what would be the implications for your own finances? To ensure you get a clear picture of where you stand as soon as possible, your separation counsellor will inform your ABN AMRO advisor of the principles of the separation covenant. The advisor can then quickly assess your mortgage application and set things in motion if it is approved. Useful websites The following websites provide a lot of useful information (in Dutch) about topics relating to separation and divorce. abnamro.nl/scheiden On this site, you will find additional information about divorce and separation, and related subjects. rijksoverheid.nl Look under Familie, jeugd en gezin ( Relatives, young people and family ). berekenkinderalimentatie.nl/abnamro This site offers a special free tool that you can use to work out how much child support a parent needs to pay. Things move faster when you are both present It is best if you and your partner see our advisor together. That way, you both get the same information at the same time, speeding up the process of fairly dividing your financial products.

12 12 What action should you take? Prefer your own advisor? It s fine for each of you to have your own advisor. Explain the situation to your advisor, who will arrange for the financial affairs of one of you to be looked after by a colleague. Naturally, we will ensure that your banking affairs are transferred in an appropriate manner. Bear in mind that in many cases, you and your partner will both need to sign cancellation or closure requests for joint products. Payment account can often be set up straight away Your ABN AMRO advisor can arrange some products for you without waiting until the divorce or separation has been formalised. For example, you can normally get a new payment account or savings account in your own name straight away. This will give you a good oversight of all the payments you will be making. It is advisable to arrange this after consultation with your partner and your separation counsellor, so there are no unpleasant surprises. Step 3: Make the separation or divorce official If you and your partner are married, a divorce covenant will be drawn up by your separation counsellor. The covenant sets out the agreements that you and your wife or husband have made concerning your divorce. It covers matters such as the division of your assets, where each of you will live and, if you have children, any child maintenance that may be payable and the parental plan. Once both of you have signed the covenant, it is handed in to the court. You are not officially divorced until the court s decree ending your marriage has been recorded in the public register. If the two of you agree everything quickly, a divorce can be finalised within three months. If you are in a registered partnership, it needs to be officially dissolved when you split up. Your separation counsellor can arrange this for you. People who live together without a formal agreement do not need any official documentation in the event of a break-up. However, if you and your partner have a cohabitation contract, it will normally include agreements about what will happen if you separate. What needs to be arranged will depend on the details of the contract, which may be open to interpretation. Your separation counsellor can advise you on the best course of action. When is a separation or divorce covenant needed? A covenant is often one of the documents required in order to apply for new financial products or to change existing ones. A covenant is also needed to discuss your (future) personal and financial circumstances. In many cases, a draft covenant will initially be sufficient. If Scheidingsexpert is guiding you through the process, we can consider a mortgage application without a (draft) covenant. Step 4: Amend existing banking products and/or apply for new ones Some banking products, such as payment accounts, can often be arranged even before your divorce or separation is finalised. A life insurance or a bank savings product can be discussed on the basis of a draft separation covenant. However, we cannot amend, close or definitively arrange your mortgage or certain other products and services until we have seen a definitive separation covenant. This is the case even if you are using the services of Scheidingsexpert.

13 13 Step 5: Finally, a few things you must not forget If you and your ex bought a home together, you will need to see a public notary again after the divorce or separation is complete. The notary will then formalise the transfer of ownership. It is a good idea to inform other organisations and public bodies at this stage, e.g. the municipality and your utility company. Other things to consider include changing your will, preparing a tax return for the year of separation or divorce and clarifying the implications for your pension. Your ABN AMRO advisor and your separation counsellor can help you with these arrangements. Naturally, your advisor will do everything possible to help you (re)organise all your finances quickly, so that you can get on with your new life. More information about banking? Visit abnamro.nl/scheiden (in Dutch) for more information about divorce and separation, and related topics.

14 14 It always pays to plan ahead useful information You don t have to wait until your home is sold before you act If you have decided to part ways and you have put your home on the market, it might seem best to wait until the sale is complete before doing anything else. But, you don t have to wait; you can get advice on the financial implications of the current situation and the future sale of your home straight away. Then, the financial arrangements regarding the property while it is on the market and once it is sold can be agreed and recorded in your separation covenant. Talking to your advisor at an early stage also helps you avoid unpleasant financial surprises later on. Clarity can be reassuring during the uncertain time when your home is up for sale. Do you want to stay in the home you bought together? If the property belongs to both of you, you will need to buy your ex-partner s share. An independent valuer can tell you how much your home is worth. If there is positive or negative home equity a gap between what the property is worth and how much you owe on your mortgage you will need to make the appropriate arrangements with your ex. Your ABN AMRO advisor can help you with this and other matters relating to taking over a jointly-owned home. Is your ex paying the mortgage? If you are staying on in the home you bought together, but your ex will continue paying the mortgage in full, the tax authorities may regard the mortgage payments as alimony (maintenance payments). Your separation counsellor can advise you about this and help make sure everything is correctly reported on your tax return. Continuing a mortgage in one person s name Your advisor will be pleased to tell you whether it s financially feasible for you or your partner to take over your joint mortgage. That may not be possible if, for example: The mortgage was based on two incomes. One of you may not earn enough to continue the mortgage alone. There are other debts that have to be paid first. It may be that the income of the partner who wants to take over the mortgage is not sufficient to cover both the other debts and the mortgage. Would you like to know more about divorce or separation and your home? Visit abnamro.nl/scheidenenwonen. Using the NHG scheme when you separate or divorce Is your mortgage covered by the National Mortgage Guarantee (NHG) scheme? If so, you may be able to make use of the scheme in the event of separation or divorce. You are protected if, for example, the home is sold when you separate and the amount you can sell it for is not enough to cover what you owe. Your advisor can tell you more about the conditions.

15 15 Do you and your partner have children together? Are your children still minors (too young to be responsible for themselves) and will you and your partner have joint custody? If so, you must make a parental plan in the event of separation or divorce. This has been a legal requirement in the Netherlands since The parental plan must meet a number of minimum requirements. It has to contain arrangements regarding access to the children, care, education and financial support. Each of you also needs the other s agreement to any important decisions regarding the children for which you share responsibility. Your separation counsellor can advise you on this and draw up a parental plan. Who can make decisions about the children? People often assume that children aged twelve and above are free to decide which parent they will live with. However, the law doesn t give them the right to choose until they are eighteen. Of course they may express an opinion, which a court will take into account. What happens to your pension? If you divorce or separate, there may be implications for your pension. If you are married, appropriate arrangements will need to be made in the divorce covenant. Your separation counsellor can help you with this. Don t forget to change your will If you do not change your will after separation or divorce, your ex partner may be entitled to an inheritance even though you have split up. By making a proper will, you can avoid difficulties in the event of your death. Do you own a business together? If you and your partner have a business together, divorce or separation can have major implications for your personal finances. Scheidingsexpert specialises in giving separation advice to entrepreneurs. Your ABN AMRO advisor will be happy to put you in touch with them. If you have any questions about banking matters, your personal banking advisor and your ABN AMRO business advisor will provide you with the support and advice you need. Avoid future problems and legal action Many future events can be foreseen at the time you separate. You know, for example, when your children will turn eighteen, when you and your partner will reach retirement age and that your incomes will change over time. It makes sense to think about these things at the time of the break-up, and to agree how to deal with them in your separation covenant. That avoids quarrels later on, which can sometimes involve going back to court.

16 16 You can reach ABN AMRO 24 hours a day, 7 days a week, through various channels information and advice 24-7 telephone support You can reach us by phone 24 hours a day, 7 days a week by calling (English)*. Branches For information about our products and services, you are welcome to call in at any of our branches. Brochures Brochures describing ABN AMRO s products and services are freely available in our branches and can also be requested by calling *. Collaboration with Scheidingsexpert ABN AMRO works with Scheidingsexpert Nederland to provide advice and mediation on divorce and separation. For more information about the services available from Scheidingsexpert Nederland, visit scheidingsexpert.nl/ abnamro (Dutch) or call (English). Internet Visit abnamro.nl/en for detailed information about our products and services. You can also find us 24 hours a day, 7 days a week on Twitter, Facebook and LinkedIn. Follow us for news of the latest developments, handy tips and special offers. You can also make suggestions and put questions to our web care team. In most cases, we can resolve your problems right away. * Calls are charged at your service provider s standard rate. The cost of the call depends on your service provider.

17 17 About ABN AMRO ABN AMRO Bank N.V. s registered office is Gustav Mahlerlaan 10, 1082 PP Amsterdam, Netherlands. Telephone number: *. Internet address: abnamro.nl ABN AMRO Bank N.V. has a banking licence from the Dutch Central Bank (De Nederlandsche Bank N.V.) and is listed in the register of the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten) under number ABN AMRO Bank N.V. is regulated by the European Central Bank (ECB). Information about ABN AMRO Bank N.V. s complaints procedure and the dispute resolution bodies to which ABN AMRO Bank N.V. is affiliated is available from abnamro.nl/allesnaarwens or by calling The brochure Are you satisfied with pour service?, which describes how to make comments, suggestions or complaints, is also available on request. About this brochure This brochure contains general information. It may not apply to all aspects of your personal situation. The contents of the brochure should not therefore be interpreted as advice to take (or not take) any particular course of action. Decisions that you take after reading this information are at your own risk. We have endeavoured to use reliable sources of information for this brochure. However, we cannot guarantee that all the information remains correct, complete or up to date. If you would like to know more about the subject covered by this brochure, please get in touch. This brochure is intended for our customers in the Netherlands. We cannot guarantee that the information in the brochure is valid in other countries. ABN AMRO Bank N.V. is listed in the Trade Register of the Amsterdam Chamber of Commerce under number VAT registration number: NL B01.

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