10 September 2026
A divorce often involves difficult decisions. One of the most significant questions is what should happen to the jointly owned home.
In many cases, one of the partners remains living in the home while the other leaves. That may sound straightforward, but legally and financially it is often complex. One issue that is increasingly arising is so-called interest compensation.
In this blog, we explain what interest rate compensation means, what the legal basis for such compensation could be and how the courts currently assess the claims.
The partner to whom the marital home will not be allocated may claim an interest rate compensation as a financial payment. The idea is that the partner who remains in the home may benefit from the existing mortgage with a low interest rate. The departing partner, by contrast, often has to obtain a new mortgage at a significantly higher rate. That difference may result in a financial disadvantage for the departing partner.
There is no specific statutory provision on interest rate compensation in the event of divorce. Courts therefore assess on a case-by-case basis whether it is reasonable to award compensation. The assessment depends heavily on the circumstances and the financial position of both parties.
A claim for interest rate compensation is usually based on unjust enrichment ‘ongerechtvaardigde verrijking’ (article 6:212 of the Dutch Civil Code) and/or damages ‘schadevergoeding’. The rationale is that the partner remaining in the home is financially enriched, while the other is disadvantaged.
Courts impose strict requirements on the substantiation of such a claim. The party seeking interest rate compensation must demonstrate the alleged disadvantage concretely and with supporting documents, for example by means of a calculation prepared by a mortgage adviser.
In addition, the court will take into account the financial position of both parties. Can the partner who remains in the home pay the requested compensation without being forced to sell the property? And how does the claim relate to the interests of any children, who often benefit from stability in their housing situation? Ultimately, the assessment is framed by standards of reasonableness and fairness. Interest rate compensation will only be awarded if it fits within that balance.
Case law shows that interest compensation is rarely granted as a matter of course. In many cases, courts reject such claims because the alleged disadvantage is insufficiently substantiated or because awarding compensation would be unreasonable. Nevertheless, there are situations in which compensation is deemed appropriate.
In a judgment of the District Court of The Hague (ECLI:NL:RBDHA:2025:16893), the court awarded interest rate compensation to the husband. He had carefully substantiated his disadvantage with an expert calculation. The court considered it reasonable that he should be compensated, because the full interest rate benefit accrued to the wife. In doing so, the court also took into account the interests of the children and the financial capacity of both parties.
In another case before the Court of Appeal of The Hague (ECLI:NL:GHDHA:2025:1853) the court awarded partial interest compensation. The court emphasized that such compensation is not automatic and that each case must be assessed on its own merits. In this instance, the departing partner received half of the calculated benefit, as the court found this to be reasonable under the circumstances.
The common thread in case law is clear: interest compensation remains a matter of tailoring the outcome to the specific case. The result depends on the quality of the substantiation and the financial and personal context.
Interest rate compensation in connection with the allocation of a home after divorce is not a standard entitlement. The court decides in each individual case whether compensation is reasonable, based on concrete figures, the remaining fixed-interest period and the personal circumstances of both parties. A tailored approach is the norm.
Anyone faced with this situation would be well advised to carefully map out the financial consequences and seek expert advice. A well-substantiated approach increases the likelihood of a fair and balanced solution.
Are you dealing with the allocation of a home in the context of a divorce, or would you like to know whether interest rate compensation may be relevant in your case? Please feel free to contact one of our family law lawyers.
Interest rate compensation is a financial payment that may be claimed by the former partner to whom the marital home is not allocated to, because they lose the benefit of favourable mortgage conditions.
No, interest rate compensation is not an automatic entitlement. The court assesses in each case whether such compensation is reasonable.
The calculation is tailored to the individual case and is often based on the difference in interest over the remaining fixed-interest period. An expert should make the calculation, for example a mortgage adviser, is essential.
