Pension funds are often very valuable assets, which means they will be a top priority for couples who are going through divorce. When you are getting divorced, understanding your rights and what options are available to you is incredibly important.
Dealing with pensions in a divorce can be a complex matter and it is understandable to have concerns over your future financial position. This means it is important to instruct specialist solicitors who have a detailed understanding of how pensions are dealt with on divorce.
At Preston Redman, our Family team has substantial experience and expertise in a wide range of family law matters, including dealing with pensions on divorce. We have previously offered pensions advice to clients from a diverse range of backgrounds, from those who have comparatively fewer assets, through to those with higher net worth.
How our divorce and pensions solicitors can help you
Our specialist divorce and pension solicitors can provide expertise on various matters, including:
- Pension offsetting
- Pension sharing orders
- Pension earmarking
Pension offsetting is a common method for dealing with pensions in a divorce. It involves one partner surrendering their right to the other partner’s pension in exchange for a larger share of other matrimonial assets.
Pensions and divorce settlements that are finalised via pension offsetting allow for a clean break for separating couples, managing the financial ties that may otherwise bind them together.
The value of a pension is based on the pension’s transfer value. Either all or a percentage of the pension would be transferred to a new pension if the holder were to move their pension.
Pension sharing is an alternative option for divorcing couples.
This is where a percentage of the pension pot is placed into a separate pension scheme for the sole benefit of the person without a pension. That person will then have their own separate pension, often providing for a clean break.
In certain circumstances, pension earmarking may be a suitable option for dealing with a pension in a divorce. It works by transferring a percentage of the pension income to the person who would have otherwise lost out on the benefit of the pension.
Pension earmarking causes the divorcing couple to be financially tied to one another, which means it is not necessarily the most appropriate option for many couples.
If it is not possible to come to an agreement on a pension in a divorce, it will be necessary for the court to decide on what the most appropriate outcome should be.
Our Family team will be able to advise and guide you through the court process as to what it to happen in relation to pensions.
Common questions about pensions on divorce
What happens to pensions when you divorce?
When splitting finances during a divorce, pensions are considered along with all of the other financial assets that have accumulated during the course of the marriage.
Can I claim a share of my partner’s pension if I remarry?
If you remarry following a divorce, you automatically lose the right to make a claim against most of your former spouse’s assets.
Why choose Preston Redman for help with pensions on divorce?
Our team will provide sensitive and practical advice to ensure that you are fully supported throughout the entire process.
We are proud to be recognised for our family law expertise by the Law society, having been awarded with the Family Law Advanced accreditation. This reflects our dedication to providing exceptional family law advice to individuals and families in Bournemouth and across the country.
Many of our team are members of the UK’s leading family law association, Resolution. Resolution focuses on removing conflict from divorce, civil partnership dissolution and other relevant proceedings.