|
|
Pension sharing on divorce - Information and advice
The main
purpose of pension sharing on UK divorce is to allow the members pension rights
to be treated in the same way as the other matrimonial assets so that the spouse
with no or less pension provision can now plan for their retirement. For a
couple in
divorce and nullity involved in ancillary relief the principles are set out in
section 25 of the Matrimonial Causes Act 1973 (MCA 73).
This gives the court the power to resolve the matrimonial property and financial
matters including the value of retirement benefits of any pension arrangements
held between the parties where possible. Before pension sharing, the only
solution for the division of the pension arrangements was by offsetting against
other matrimonial assets held between the couple on divorce. The courts are
directed to have regard to all the circumstances of the case and to seek a clean
break between the parties. The MCA 73 has been amended to reflect the need of
the former spouse to secure members pension rights on divorce, nullity or
judicial separation, however pension sharing will only be possible on divorce
and nullity of marriage.
Section 166 of the Pensions Act 1995 introduced earmarking and inserted sections
25B to 25D of the MCA 73. Earmarking provisions have not been used in England
and Wales as it does not allow for a clean break of the retirement benefits.
Matrimonial lawyers realised the limitations of earmarking and an enabling
clause within section 16 of the Family Law Act 1996 (FLA 96) allowed for the
concept of pension splitting.
Once the order has been made you need to put the money somewhere!
The big question always is what do I do with the pension credit? Do I open
a new scheme? transfer to my existing pension? or keep it with my exe's pension
fund?
You are therefore going to need specialist advice as to where to put the funds
GET ADVICE ON PENSION SHARING - TODAY
Divorce-Online have partnered with specialist pension IFA,
Grosvenor
Consultancy Limited to provide a specialist no obligation pension sharing advice service
for Divorce-online clients.
Types of advice offered
- Is Pension sharing a good idea for me?
- How much is the pension worth?
- Once the pension share has been made where should the money go?
If you would like to be contacted for a no obligation chat with a specialist
adviser complete the form below.
|
|
