Often in cases where there is a long marriage with good financial planning, the pension pot can be a significant and valuable asset.
When divorcing it is therefore vital to make sure this asset is considered carefully and advice on the legal options is sought. The options include pension sharing, pension attachment and pension offsetting. Specialist advice from an actuary/pension advisor can also be needed to ensure the amount shared is fair and creates equality of income, pension value or appropriate offset. An actuary can also assist with calculating what proportion of the pension is available for division, if there are suggestions that elements should not be taken into account as they are pre marital or post separation, when there is relevant and fair.
If you need any advice on the financial consequences of divorce please do not hesitate to contact me.
With more people undertaking DIY divorces online, the chances of making a mistake in relation to pensions is increasing. “In many cases a pension attachment order may not be the most appropriate remedy. This is because the order does not prevent a person from transferring money out of their pension or oblige them to continue paying in, so unless the pension is already in drawdown, it can be ineffective.” According to Nockolds, a pension sharing order will be the most equitable way of dividing pension assets for most couples.