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.


ProviderFund NameSIPP OptionMinimum InvestmentMore Info
Barclays Defined Returns PlanyesMinimum 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
*Our pension service will put you in touch with a network of specialist independant financial advisers who can offer professional pension advice