Pension sharing in divorce is a hot topic currently for family law practitioners.
A comprehensive report was issued by the Pension Advisory Group in July this year, entitled “A Guide to the Treatment of Pensions on Divorce”, if anyone out there has a spare few hours to peruse it. Levity aside, it is an essential work of reference for the jobbing divorce solicitor, for whom pension sharing can be a minefield of potential negligence claims if care is not taken.
Most problems arise in respect of offsetting, as it is known. This is where in a divorce one party chooses to keep the larger share of the capital assets, usually the matrimonial home, in return for agreeing not to share the husband’s pension fund. If this pension has any complexities about it, the stated transfer value could be very much an under value and therefore not a fair swap for the house at all.
Even a signed disclaimer recording that advice to take a pension share was rejected, is not always sufficient to protect a solicitor, if the divorcing spouse did not realise the true value of the pension asset she was relinquishing. Pension assets can be the most valuable asset in a marriage. Do not under estimate them and if you have any doubts about this complex subject, consult a family law solicitor.
Wednesday, November 20th, 2019 Uncategorised