A pension can be the biggest asset after the family home and is included in any financial settlement. Therefore, it is important you are aware of all the options before deciding what’s best.
All settlements require confirmation via a court order and pensions are dealt with in 3 ways:
- Pension Sharing – you receive a percentage share of the pension pot
- Pension Offsetting – the value of a pension is offset against other assets
- Pension Attachment – you receive payments from a pension pot
The Guide to the Treatment of Pensions on Divorce July 2019
A new pensions document has been recently published by a group of lawyers sponsored by the Nuffield Foundation. The report focuses on guidance to the courts as to how to treat pensions when dealing with divorce.
Key points are
to treat the different types of pensions
- defined benefit versus defined contribution
- current practices in the courts often miss significant valuation issues leading to negligence claims
- parties missing out on pension entitlements they should have obtained in financial remedy proceedings
Please contact us for any help and advice on these issues.
Advice will need to be specific to each circumstance and pension advice may require bespoke third party accounting and or financial advice.