What happens for a separated couple in the field of contingency funding ?

In legal terms, the separation of a couple does not have the same consequences and effects as the divorce, because the marital link is not broken. Therefore, a separate man and woman are still considered as spouses.

By consequence, only divorced spouses stop being legal heirs to each other and loose the right resulting from death.

In case of death of a separated person, the pension fund is due to pay widowhood compensations to the separate wife and, if it was asked for, widowhood compensations to the separate husband.

If, in case of death, a capital is included in the pension fund, the fiscal authorities do not allow the policy-holder to modify the order and the part of the beneficiaries, which are the following:

• The widow, orphans up to 18 years – this right being extended up to their 25^th year in case of studies or professional courses – and, under certain conditions, the divorced wife.

• The widower as well as the persons to whom the policy-holder was giving a substantial financial support at the time of his death or during the last years before.

• Children, relatives, brothers and sisters, nephews and nieces.

• In case of absence of persons belonging to the categories 1-3, either the contributions paid by the policy-holder, or 50% of the contingency capital can be paid to other legal heirs.

Therefore, this capital will generally be allocated to the separate spouse and cannot be given to anyone else.

Another implication of separation is that it requires to get the written assent of the other separated spouse in case of refunding in cash of the 2^nd category savings – when the policy-holder leaves Switzerland for good, when he becomes self-employed and no more subject to the obligatory 2^nd category insurance or if the amount of exit compensation is very low.