How Are Pensions Treated On Divorce?

Divorce and Pensions

“How Are Pensions Treated On Divorce?” Family Law Solicitor Adrian Rose discusses in his latest Timms Blog…

Pensions can sometimes be the biggest asset of the marriage. And as a recent study by Aviva found, sometimes they are ignored without understanding the consequences of doing so. This can result in unfairness later in life and, in some cases, financial hardship.

You can access the full article here.

Pension Options

Pensions can be the most significant assets of a marriage, however, they can also be highly complex. Therefore, it is vital that they are considered as part of any divorce settlement. The family Court, on divorce, has a number of powers to deal with pensions.

Our specialist family lawyers can advise about:

  • Pension sharing – where a pension fund is “split” between the couple giving the recipient a pension of their own
  • Pension attachment – where one of the couple’s pension benefits are shared with the other at the time of retirement
  • Offsetting – where the value of a scheme or its benefits are traded off against other family assets

Understanding Pension Types

Understanding pension types and their value is sometimes difficult. This is because there are very many types of pensions, how their value is calculated can differ from scheme to scheme and there are sometimes hidden benefits. Therefore, it is important to obtain specialist legal and financial advice when comparing different types of pensions. This might seem like an unnecessary expense at a time when on separation finances might be tight, but this should perhaps be viewed as an investment for the future to ensure fairness and financial security later in life.

How Can Timms Help?

It is essential to have specialist advice to ensure a fair, cost-effective and tax-efficient outcome. Which option is best for you depends very much on your particular circumstances and expert guidance is essential to understand those options.  We regularly deal with all types of pensions on divorce and can help you understand the best route to take in your specific circumstances.

If you have any questions regarding pensions on divorce, please do not hesitate to contact me on 01332 364436 or via email at a.rose@timms-law.com. Alternatively, you can read our webpage on the topic here.

 

 

Adrian Rose

May 2022

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