Pension News Divorcees Warned About Pensions
28 November 2007
Women divorcing their husbands should ensure they claim a share of his pension, new data suggests.
Only eight per cent of married couples who divorced in the 12 months up to the end of September got a pension sharing order, Ministry of Justice figures show, the Press Association reports.
It is a slight rise on figures from 2000 to 2006, when new rules regarding pensions sharing were introduced, according to stockbroker Killik & Co, but not enough.
The company suggested that a new women’s pensions underclass was being created.
Managing director of its financial planning division Malcolm Cuthbert said women were usually at a disadvantage in building good pension funds because of career breaks, such as for raising a family.
“Whilst in some divorces pensions count for little … pensions are normally the biggest asset in a divorce settlement after the matrimonial home and lawyers should be advising their clients accordingly,” he added.
Recent research by Saga into its equity release service showed that one in eight applicants used the cash to fund a divorce or buy out a former partner’s share in a property.
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