If you are searching ‘Pensions on divorce expert’, chances are that you are separating from your spouse and have concerns about how your pension pot will be dealt with. Many clients are surprised to learn that pensions are one of the most important aspects of any financial settlement on separation and divorce. As specialist family law solicitors, we understand that what happens to your pension can be just as significant as what happens to the family home, and we can help you understand your rights and options at every stage of the process.
Please call us free now on 0800 059 0600 or complete a Free Online Enquiry and a member of the team will get back to you soon.
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Why Pensions Are So Important In Divorce Proceedings
For many couples, pension pots are among the largest assets built up during the relationship. Pensions are designed to provide income and security in later life, so their importance cannot be overstated. We can help you identify all relevant pension arrangements and ensure they are properly valued before you make any long-term decisions.
Pensions that may need to be considered include workplace schemes, personal pensions, self-invested personal pensions and, in some cases, additional state pension rights. Even pensions built up before the marriage or civil partnership can sometimes be taken into account for the purposes of a financial settlement, depending on the overall circumstances and needs of each person. Taking clear independent advice at an early stage ensures that you avoid unintentionally giving up valuable retirement benefits that you may later rely on.
How The Court Approaches Pensions
Generally speaking, pensions form part of the ‘matrimonial pot’ that the court will consider when deciding what a fair financial settlement should look like. The law does not say that pensions must be divided in any set proportion but requires the court to aim for fairness, taking into account all the circumstances of the case.
When dealing with pensions, the court will look at factors such as the length of the marriage, the ages of each person, their earning capacity now and in the future, health, housing needs and contributions to the family, including caring responsibilities. In many cases, sharing pension provision is one way of recognising the contributions of a spouse who may have stepped back from work to raise children or support the family.
Pension Sharing Orders
A pension sharing order is one of the main tools the family court can use to deal with pensions on divorce. It involves the court specifying a percentage of a pension that will be transferred from one spouse to the other so that each has their own separate pension rights going forward. As a result, it achieves the clean break many couples wish for following a separation.
Once a pension sharing order is made, the pension provider will usually have a fixed period in which to implement it and create a new pension arrangement in the receiving person’s name or transfer the share to another scheme. It is important that the wording of the order and the annex dealing with pensions is accurate, because pension providers can only implement what the court has formally approved. Our experienced family law team is used to working with pension administrators and will ensure that the technical requirements are met so your order works as intended.
Pension Offsetting And Attachment
Pension sharing is not the only way pensions can be taken into account when you divorce. The court can also consider pension offsetting, which involves one spouse keeping more of the pension while the other receives a larger share of a different asset, such as the family home or the couple’s savings. This can be a convenient option in some cases, such as if one partner wants to stay in the family home. However, it is vital to understand the consequences of the arrangement so that you do not give up future income for short term gain.
Another option, used less frequently now, is a pension attachment order. In this scenario, part of the pension income or lump sum is paid to an ex-spouse when the pension comes into payment, rather than being split into two separate pots at the time of divorce. Pension attachment does not achieve a clean break since the parties have ongoing financial ties.
How We Can Help
Thinking about pensions when you are already dealing with the emotional strain of a relationship breakdown and immediate financial pressures can feel overwhelming, but taking early advice can make a real difference to your long term financial security. Understanding your options at the outset helps you negotiate with confidence and reduces the risk of having to try to revisit your settlement later because something important was missed. We can help you take stock of your pensions and other assets from the start, so that you make informed decisions about the financial settlement.
At Johnson Astills, our family law solicitors advise clients across Leicester, Loughborough and beyond on all aspects of divorce and financial settlements, including complex pension issues. We are experienced in dealing with pension sharing orders, pension offsetting and pension attachment, and in working with pensions on divorce experts where specialist input is needed. We can help you at any stage of the process, from the initial consultation, through negotiations and court proceedings, to the practical implementation of any orders made.
Please call us free now on 0800 059 0600 or complete a Free Online Enquiry and a member of the team will get back to you soon.
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