Pensions have been in the news over the last few months from the need to reform pension schemes for MPs to those of the Armed Forces as well as pension mis-selling scandals.
The value of a pension can often be overlooked when parties separate. Apart from the family home a pension scheme may be the next most valuable asset.
Often the importance of having a secure source of income for the future and in particular for retirement can be overlooked in all the emotional turmoil of dealing with the breakdown of your marriage and the separation itself.
Through divorce proceedings a couple can choose to:-
• Offset any claims against one party’s pension by receiving a greater share from other assets e.g. the family home, other property or savings (pension offsetting)
• Provide one party with a share of the other’s pension when it comes in to payment (pension earmarking)
• Divide the pension now so that each party has their own individual pension fund (pension sharing)
There is no “one size fits all” approach to dealing with pensions on divorce. The individual circumstances of your case will determine what
is best for you bearing in mind your current and future needs for income and capital.
For example you may see it as a priority to receive more capital now so that you can buy a larger house for yourself and your children. Alternatively your priority may be to have a more comfortable retirement in the future.
The starting point is to know how much any pension scheme is worth. Your pension scheme can provide a valuation known as a transfer value, CETV or cash equivalent transfer value.
Legal advice about the options open to you, whether you are the one frightened of losing a large share of your pension to the other person or the one concerned about your future in retirement, is an important part of making the right decision for you.
For more information contact Michelle Simpson at Chafes Solicitors LLP New Mills office on 01663 743344 or email firstname.lastname@example.org in order to discuss your family law issues