How to Protect Your Pension in a Divorce
Pensions can be as valuable as the equity in your house and sometimes significantly more valuable. It is important that all pension benefits are considered when a marriage ends in order to protect what is rightfully yours.
A divorce can also have a lasting impact on your financial status. Typically, a pension earned by one spouse is considered a joint asset of both, which means it's subject to division in divorce.
It doesn’t matter what the pension is, all pensions can be shared (apart from the basic state pension) and are relevant in financial proceedings.
Pensions are often dealt with as part of the financial settlement on divorce. Sometimes they have a considerable value and it is important that they are considered when dividing assets fairly between the parties. Expert assistance may be needed to help unravel the pensions and our experienced family lawyers will provide advice about the best approach in your circumstances.
Free Initial Consultation
We understand that you’ll want to discuss your options and find out more about how we can help. We offer both appointments throughout the day and out of hours to accommodate our clients. We are happy to meet you at our offices across London, Essex or Kent. To find out more about free initial consultations, please call us on 020 3753 4667 or email
Pensions
Pensions are an asset which can be separated out and any pre-relationship entitlement calculated separately. However, if we are dealing with the same pension throughout a relationship then it is not an easy calculation to make.
It is possible to try to value how much of the pension was accrued prior to the marriage but it is not an exact science and there are different methods in which such a valuation can be carried out. Some couples decide to work out how long the pension has been in existence and of that time, how many years they have been together.
What are the two main options for dividing pension assets?
Pension Sharing Order
This is where a percentage of one party’s pension is transferred to a pension, which belongs to the other. Both parties end up with completely separate pension funds and this can help secure a clean break. There can be considerable administrative costs to be paid to the pension provider for this service.
Offsetting
Offsetting is where one party is compensated for the loss of pension rights by receipt of other assets. For example, one party might keep a property or more cash, while the other retains their pension.
All of these options require a Court Order to be effective and you should seek expert advice from a family lawyer.
It’s worth checking whether you have any old or lost pensions that you might have forgotten about. If it comes out later that you had assets you have not disclosed, it could go against you.
Contact our Family Law Solicitors
The right solicitor changes everything. Anglo Law Solicitors provides expert legal advice on family law and divorce proceedings.
Speak directly to a Family solicitor now on 020 3753 4667 or complete our online contact form for your free consultation.
We serve clients across the following areas
London areas - City of London, Aldgate, Tower Hamlets, Spitalfields, Westminster, Kensington & Chelsea, Southwark, Bishopsgate, Canary Wharf, Islington & Highbury, Angel, Belsize Park, Hampstead, Swiss Cottage, Finchley.
Essex - Chigwell, Hainult, Woodford, Epping, Chafford Hundred, Chelmsford, Brentwood, Upminster, Grays.
Kent - Tunbridge Wells, Tonbridge, West Malling, Maidstone, Sevenoaks.
* “The court have a wide discretion when deciding what orders to make in relation to financial proceedings. In exercising their discretion, the court will take into full account the specific facts of the particular case in question. The court are guided by Section 25 criteria laid down by the Matrimonial Causes Act 1973. In deciding how the family assets are redistributed between divorcing couples or determining what happens to income generating assets, the court will always make reference to the guidelines of Section 25. Each case presented to the court is ultimately adjudicated on its own merits and the needs of any dependant children will always be the court’s main priority”.
- Created on .