If you pay or receive childor spousal support, be aware of the statutory annual increase. Want to know what the increase is for 2023 and what (again) is the indexation of alimony? Then read on.
Why alimony indexing?
Indexation is the adjustment of monetary amounts to an index figure. It follows from the law that a maintenance contribution established by a court judgment or agreement is changed annually by operation of law by a percentage set by the Minister of Justice. The idea behind the article of law is that wages change annually and the amount of child and spousal support should be adjusted accordingly. The amount of indexation depends on the average increase in wages in the Netherlands and the wage index figure is calculated by the Central Bureau of Statistics.
Can indexing be excluded?
Ex-partners can mutually agree to exclude indexation of spousal support. For child support, this is not possible. The indexation of child support is a compulsory measure. Thus, annual indexing is mandatory. Parents can, however, agree on the moment when indexing will take place for the first time. Under the law, the court can be asked to exclude annual indexation of contribution for a certain period of time.
Per when should indexing be done?
It follows from the law that the change, the indexation, takes effect on January 1. For example, if a parenting plan was concluded in October 2022, then child support will be increased for the first time in January 2023, unless parents have agreed otherwise. If the order was made in July 2022, then child support will be increased for the first time in January 2023, unless the court decided otherwise.
What is the amount of indexing?
Indexation may vary from year to year. In November of each year, the indexation rate in effect as of the following January is announced. The rate was 3% in 2021, 1.9% in 2022 and is 3.4% in 2023.
What if not indexed?
Statutory indexation occurs by operation of law. This means that the indexation applies automatically even if it is not claimed. If the maintenance obligor does not pay the increase, the maintenance recipient can claim the increase up to five years back.
Does indexing lead to recalculation of alimony?
Indexing results in an increase in alimony and, to that extent, a recalculation. The monthly alimony is multiplied by the percentage and the outcome is the new monthly amount. A handy calculation tool can be found on the LBIO website.
More can change in a year than an annual increase in wages. Consider remarriage, moving, family expansion and change of employment. Sometimes those changes can be reason to have alimony recalculated. Would you like to have an alimony calculation made? If so, contact our specialists.
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