PENSIONS SHARING

Pension Sharing is a method by which pension arrangements may be taken account of and divided up between the parties under a divorce settlement.  It was introduced in the year 2000; we have been working in and providing advice in this area from the very outset.

The main purpose of pension sharing for divorcing couples is to allow pension rights to be treated in the same way as the other matrimonial assets i.e. the value taken account of, and if appropriate a split made between the divorcing parties.

Pension rights are often undervalued but can be worth more than the family home. The law requires that account must be taken of pension benefits in divorce proceedings, but they are often overlooked or a true value not used.

The mechanics of Pension Sharing can be complicated and there are strict procedures to be followed. It is always wise to seek professional advice BEFORE applying to the Courts for a Pension Sharing Order as the structure of pension benefits and the methods of valuing them can vary enormously.

Once a Pensions Sharing Order has been granted there are a number of options open to the recipient of the Pensions Credit, including the option to transfer into a new individual arrangement and occasionally an option to become a member of the original pension scheme. These options need to be considered carefully. It is vital that professional advice be sought in this regard as there are many potential pitfalls.

This is a complex area: many types of pension exist, different rules apply and there is a variety of ways in which pensions can be accounted for as part of a divorce settlement. No two sets of circumstances are ever the same.

Whether working “collaboratively” or not, and whether you are looking for advice on your options before or after divorce (and issue or implementation of the Pension Sharing Order), we can help. We are happy to work directly with you or via your legal advisers.

If you are in receipt of a Pension Sharing Order we can assist with its implementation and, if appropriate, take the necessary action to transfer the benefits into an appropriate policy held in your own name.

We have a huge amount of experience in this particular field and can bring a realistic, practical and pragmatic approach to dealing with all aspects of Pensions in Divorce.