Pensions and Divorce

Rather a dull topic you may think, and if you are a couple going through a divorce but still many years away from retirement age, you may consider it irrelevant to your situation. But even if you are only in your 40’s and you have been married for a while and either one of you has built up a pension fund during that period, it could turn out to be as valuable as the equity in the matrimonial home. For older couples and especially those approaching retirement, pension funds can often be the major asset in a divorce.

You will probably all be aware of the changes brought in by the Government last year which allow many pension funds to be treated as pots of money, rather than savings that have to be invested to produce an annual income. These changes, within the necessary tax constraints, create greater flexibility for matrimonial settlements but would still need to be ordered by the Court in a pension sharing annex to the main financial order.

All of this is complicated stuff and you need expert advice from a family law specialist who will also point you in the direction of appropriate financial advice as required. You cannot share pensions without a court order. Securing your financial future into retirement is crucial and attempting a DIY divorce in this context would be very unwise.

Monday, April 18th, 2016 Divorce