Dealing With Pensions When You Divorce

When a married couple divorce and divide their finances, the most valuable asset after the matrimonial home is usually a pension. It is important that pensions are considered so that ideally each party has an income of their own upon retirement.

The first step is to obtain a valuation of the pension rights. Once the value of the pension fund is known there are three ways of dealing with pensions upon divorce:

  • Offsetting – this means balancing the value of the pension against another asset e.g. the family home.
  • Attachment – this allows for all or part of a pension or lump sum arising at retirement to be set aside for the ex spouse. This would be lost if the ex spouse remarries or the member dies.
  • Pension Sharing – this enables the court to share a pension at the time of divorce so that a percentage share of the member’s pension is transferred into a pension scheme in the ex-spouse’s name giving the parties two separate pensions to which they can contribute in the future.

Divorce cases involving pensions can be complex and it is important to seek advice from a Divorce Solicitor. We will advise you of all the relevant issues in your case and where appropriate we will seek advice from financial planners and actuaries who are pension specialists.

For more information or a free consultation please call Forbes Solicitors on freephone 0800 037 4628 or contact us by email.

Donna Amos

About Donna Amos

Donna Amos is an Associate within the Family Law Department at Forbes Solicitors. Donna writes and advises on all aspects of family law, including separation and divorce, dissolution of civil partnerships, financial settlements, prenuptial agreements, injunctions, Occupation Orders, matrimonial transfers of property, cohabitation disputes and issues regarding the arrangements for children.
This entry was posted in Family Law.