{"id":733,"date":"2022-05-31T15:40:41","date_gmt":"2022-05-31T14:40:41","guid":{"rendered":"https:\/\/ludlowlane.co.uk\/?p=733"},"modified":"2023-03-30T11:34:57","modified_gmt":"2023-03-30T10:34:57","slug":"divorce-settlements-what-about-the-pension","status":"publish","type":"post","link":"https:\/\/ludlowlane.co.uk\/divorce-settlements-what-about-the-pension\/","title":{"rendered":"Divorce Settlements – What about the Pension?"},"content":{"rendered":"\n

We last spoke here<\/a> about the \u201cno-blame\u201d divorce decree \u2013 a major change in divorce laws that came into effect in England and Wales in April 2022. All that will be required is for one party to state that there was an \u201cirretrievable breakdown\u201d.<\/p>\n\n\n\n

This greatly simplifies the process.<\/p>\n\n\n\n

But there are still other things to take care of that can be complex. Particularly when sorting out the finances.<\/p>\n\n\n\n

What each party is entitled to differs from case to case. Generally, the types of matrimonial assets that may be included are money, property, businesses, vehicles, financial support (child\/spousal maintenance), life insurance policies and possessions such as furniture and appliances.<\/p>\n\n\n\n

And of course, pensions.<\/p>\n\n\n\n

Pensions<\/strong><\/p>\n\n\n\n

The law allowing divorcees to share pensions came into effect in 2000, yet a very small percentage of people include their pensions in financial divorce settlements. Pensions are pipped to the post by family homes and businesses because their value is often overlooked.<\/p>\n\n\n\n

In fact, pensions usually hold greater monetary value than property in the marriage.<\/p>\n\n\n\n

Particularly for women. This is because the average man has almost ten times the amount of pension wealth a woman has, according to a recent study.<\/p>\n\n\n\n

So a pension sharing order can be of far more use and value to former spouses \u2013 particularly women \u2013 than property or abusiness.<\/p>\n\n\n\n

But it could be, with many going the DIY divorce route, thatdividing pensions seems too complicated to handle. But it can be worth getting the assistance of a solicitor or financial advisor to be able to go this route. <\/p>\n\n\n\n

Multiple Pensions<\/strong><\/p>\n\n\n\n

Preparation is key when it comes to dividing pensions. It is quite common these days to have a few pension \u201cpots\u201d when retiring, such as:<\/p>\n\n\n\n

\u0095 Workplace pensions<\/p>\n\n\n\n

\u0095 Any portion of your basic state pension that falls under the Additional State Pension\/SERPS<\/a> rules<\/p>\n\n\n\n

\u0095 Personal pension schemes, for example Self-Invested Personal Pensions (SIPPs), Group Personal Pensions (GPPs) or stakeholder pensions<\/p>\n\n\n\n

It is best for both parties to list all the pension plans they have and to acquire a copy of the rules for each plan so that the value of these can be taken into account in the settlement.<\/p>\n\n\n\n

You will need to know:<\/p>\n\n\n\n

\u0095 The recent values of both your and your partner\u2019s pensions (including the Cash Equivalent Transfer Value of any final salary pensions) and submit a financial statement (form E<\/a>).<\/p>\n\n\n\n

\u0095 If there are any other pension benefits available to a spouse or civil partner under these schemes. These could be amounts that would be paid to you or your children when a spouse dies, which may be nullified with divorce.<\/p>\n\n\n\n

Pension Splitting<\/strong><\/p>\n\n\n\n

Factors such as pension scheme rules, age and employment status have a bearing on which is the best route for you to go, but here are some of the options that may be available:<\/p>\n\n\n\n

\u0095 Pension Offsetting<\/strong><\/p>\n\n\n\n

Pension Offsetting is where one person keeps their pension in exchange for letting go of another asset such as the family business or home. Although this allows for a clean break, it can be difficult to make sure the distribution is fair.  <\/p>\n\n\n\n

\u0095 Pension Sharing<\/strong><\/p>\n\n\n\n

A Pension Sharing Order is transferring a percentage of one person\u2019s pension to the other. The party on the receiving end could become a member of the other\u2019s pension scheme or transfer the value of that to another pension. Having separate pensions is great but financial advice is necessary to navigate this complex process.<\/p>\n\n\n\n

\u0095 Pensions Attachment<\/strong><\/p>\n\n\n\n

Also known as \u201cEarmarking\u201d, this is when a lump sum or income is paid to the other when they start taking their pension. Similar to maintenance, it can be a fair way to split the pension. However, it also means it\u2019s not a clean break as the pension holder has control over what investments are chosen and when payments are made.<\/p>\n\n\n\n

\u0095 Deferred Pension Sharing <\/strong>(not applicable in Scotland)<\/p>\n\n\n\n

If one spouse is older and already receiving a pension, this is the option to share the pension at a later date.<\/p>\n\n\n\n

\u0095 Deferred Lump Sum <\/strong>(not applicable in Scotland)<\/p>\n\n\n\n

This is when one party, upon retiring, is required to pay a percentage of their tax-free pension lump sum to the other.<\/p>\n\n\n\n

\u0095 Individual Agreement<\/strong><\/p>\n\n\n\n

It is possible for the divorcing couple to come to their own financial agreements regarding their pensions without involving the court. However, it is best to document what has been agreed to legally and seek professional advice before going with this option.<\/p>\n\n\n\n

We hope this has helped shed some light on the subject. For any assistance with this process, please contact us<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

What each party is entitled to differs from case to case. Generally, the types of matrimonial assets that may be included are money, property, businesses, vehicles, financial support (child\/spousal maintenance), life insurance policies and possessions such as furniture and appliances.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[63,1],"tags":[18,34,29,43,36,42],"yoast_head":"\nDivorce Settlements - What about the Pension? - Ludlow Lane<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ludlowlane.co.uk\/divorce-settlements-what-about-the-pension\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Divorce Settlements - What about the Pension? - Ludlow Lane\" \/>\n<meta property=\"og:description\" content=\"What each party is entitled to differs from case to case. Generally, the types of matrimonial assets that may be included are money, property, businesses, vehicles, financial support (child\/spousal maintenance), life insurance policies and possessions such as furniture and appliances.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ludlowlane.co.uk\/divorce-settlements-what-about-the-pension\/\" \/>\n<meta property=\"og:site_name\" content=\"Ludlow Lane\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-31T14:40:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-30T10:34:57+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ludlowlane.co.uk\/#website\",\"url\":\"https:\/\/ludlowlane.co.uk\/\",\"name\":\"Ludlow Lane\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/ludlowlane.co.uk\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ludlowlane.co.uk\/divorce-settlements-what-about-the-pension\/#webpage\",\"url\":\"https:\/\/ludlowlane.co.uk\/divorce-settlements-what-about-the-pension\/\",\"name\":\"Divorce Settlements - What about the Pension? - Ludlow Lane\",\"isPartOf\":{\"@id\":\"https:\/\/ludlowlane.co.uk\/#website\"},\"datePublished\":\"2022-05-31T14:40:41+00:00\",\"dateModified\":\"2023-03-30T10:34:57+00:00\",\"author\":{\"@id\":\"https:\/\/ludlowlane.co.uk\/#\/schema\/person\/cfb231070066f327e13c6c11f9cb68ea\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ludlowlane.co.uk\/divorce-settlements-what-about-the-pension\/\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/ludlowlane.co.uk\/#\/schema\/person\/cfb231070066f327e13c6c11f9cb68ea\",\"name\":\"ludlowlane\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/ludlowlane.co.uk\/#personlogo\",\"inLanguage\":\"en-GB\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bb264081f0d95d5fae2f49536af3a5cf?s=96&d=mm&r=g\",\"caption\":\"ludlowlane\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/posts\/733"}],"collection":[{"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/comments?post=733"}],"version-history":[{"count":1,"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/posts\/733\/revisions"}],"predecessor-version":[{"id":734,"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/posts\/733\/revisions\/734"}],"wp:attachment":[{"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/media?parent=733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/categories?post=733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ludlowlane.co.uk\/wp-json\/wp\/v2\/tags?post=733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}