Pensions – Don’t trust a Solicitor to advise
I attended an excellent seminar on pensions this morning hosted by Liverpool and Victoria.
The seminar was aimed primarily at Independent Financial Advisers but one of the sub topics was pensions and divorce advice.
The leaders first comment was if there are any lawyers in the room I am about to offend you and proceeded to tell us why Solicitors should not be relied on by clients to advise on pension sharing orders.
Solicitors are not supposed to advise clients on what to do with their pension credit as this is regulated IFA work, but often do and this can lead to severe problems later when the client realises that a benefit they expected to receive has been withdrawn because of remarriage or poor choice of fund.
My advice to any person thinking about a divorce who has pension provision is before you get to the lawyer go and see an IFA who can advise you ( whether husband or wife) on the best option for you monetarily.
For instance a 50% share of husbands 5 pensions may not mean you have 50% of each pension pot as some funds may be better than others in terms of benefits so you may want a larger share of an individual pension than others, this is where the IFA can advise and maximise your gains.