Pensions and Divorce
Pension Advice on Divorce…
After the matrimonial home, a pension fund can be the second largest asset owned by a family. A pension plan is usually valued in terms of its transfer value at the time of any divorce proceedings, and is valued in that way either to be shared or offset any assets awarded to either partner. It is not always prudent to assume all assets will be divided in “half”, and in many cases that does not occur.
A partner who has sacrificed their income in the course of a partnership, to care for children being one example, could expect to benefit from any pension earned by their partner while the relationship lasts. In the case of divorce, however, this would no longer be the case, and hence the fate of any pension accrued will have to be decided either between the partners or via legal proceedings.
Over the last 10 years the law has changed regarding divorce and pensions. The courts consideration of financial matters within the divorce agreement must now include pension schemes provision. Furthermore, three measures have been introduced in an attempt to provide a greater flexibility and choice for both the divorcing couple and the courts themselves, these are as follows:
- Offsetting - Any pension benefits held by the couple are off set against any other assets.
- Earmarking - A specified amount of the member's pension and/or lump sum is payable to the ex-spouse.
- Sharing - The pension and the pension rights are shared between the couple. This is suitable for members of occupational, personal or stakeholder pension schemes. Pension sharing is not compulsory and does not apply, in the same way, to the basic State Pension.
Our Pension Service* provides:-
- Impartial quotes & advice on your pension options at divorce.
- Advice on transferring pensions and transfer analysis comparing existing scheme benefits with the new scheme
- Information & Advice on Self Invested Pension schemes
- Close to retirement? - Quotes & Advice on your Annuity Options - You could get up to 30% more income by choosing the right annuity provider for you. Information & Advice on other retirement income products.
- Assessment of your pension situation after divorce.
- Helping you with the relevant pension paperwork.
| Barclays Defined Returns Plan |  | Minimum Pension Investment £3,600 | |
| This capital protected plan has a choice of investment terms of 6 years offering a maximum return of 44%. Can be used for SIPP and SSAS pension investment. |
**Guaranteed gross income.
Disclaimer
Please bear in mind that:
- The above investment plans are designed as medium to long term investments.
- Past performance of the FTSE 100 should not be seen as an indication of future performance.
- The FTSE 100 Index measures only the capital value of the shares in the Index and no allowance is made for dividends paid by the companies in the Index.
- If you redeem a structured investment plan before the end of the term, you may get back less than the amount you originally invested. The value of the plan will be determined by the price at which the Investments can actually be sold on the relevant dealing date.
- The list of investment plans provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on an “execution only” basis.
- Full details of the funds, including investment performance statistics and risk profile will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
- The levels and bases of taxation and reliefs from taxation can change at any time and the value and availability of any tax reliefs depends on your individual circumstances. Any favourable tax treatment of SIPPs and SSASs may not be maintained in the future and is subject to changes in legislation.
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*Our pension service will put you in touch with a network of specialist independant financial advisers who can offer professional pension advice