What Is Equalization of Gains?
Equalization of gains (Zugewinnausgleich) is the most common form of asset division in German divorces. It applies to couples in the statutory matrimonial property regime of community of accrued gains, which is the default unless a prenuptial agreement states otherwise.
The principle: each partner keeps their own assets, but the partner with the higher increase in wealth during the marriage must pay half the difference to the other.
How to Calculate It
For each partner: final assets (on the day the divorce petition is served) minus initial assets (on the wedding day) equals the accrued gain. The difference between both gains is split equally.
What Counts as Assets?
Bank balances, securities, real estate, vehicles, life insurance policies, business shares, and other assets. Inheritances and gifts are added to initial assets and thus excluded from equalization. Debts are also considered.
Cost of Court Proceedings
If partners can't agree, equalization becomes a separate court proceeding with its own procedural value (half the joint assets), making it potentially very expensive — yet another reason to settle amicably.