Pensions and Divorce

Unfortunately, divorce affects a lot of people and the pressures of this emotionally difficult time can be worsened by having to make financial decisions with lasting implications. Good financial advice can ensure peace of mind that your and your dependants’ future is provided for.

We will explore your current circumstances and financial affairs and work together with you and your legal representative to provide a financial strategy and reach a settlement for your future.

One of the most complicated aspects of a divorce or dissolution settlement is pension rights. Various factors need to be considered and each party will need professional advice on which option is best for them.  We can advise on how best to deal with pensions if you’re divorcing, including:

Offsetting – when the pension funds are valued, the spouse with the greater benefits provides the other spouse with additional funds elsewhere in the settlement to compensate for the loss of pension rights.

Earmarking – the courts issue an ‘attachment order’ to the pension scheme, requiring the trustees of the pension scheme to pay a proportion of the member’s benefits directly to the ex-spouse when the benefits are taken.

Pension sharing – all pension benefits are valued and the petitioner with the lesser funds is granted a share of the member’s benefits in proportion to the overall settlement amount due at the divorce date.

Past performance is not a guide to future returns. The value of investments can fall as well as rise. Investors may get back less than invested.