{"id":182907,"date":"2022-06-24T18:17:18","date_gmt":"2022-06-24T18:17:18","guid":{"rendered":"https:\/\/dominiclevent.com\/blog\/?p=182907"},"modified":"2022-06-24T18:17:18","modified_gmt":"2022-06-24T18:17:18","slug":"what-are-the-options-for-dealing-with-pensions-in-a-divorce-divorce","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/what-are-the-options-for-dealing-with-pensions-in-a-divorce-divorce\/","title":{"rendered":"What Are The Options For Dealing With Pensions In A Divorce? – Divorce"},"content":{"rendered":"


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Harrison Drury Solicitors<\/p>\n<\/p><\/div>\n

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24 June 2022 <\/p>\n


\n Harrison Drury Solicitors \n <\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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\n To print this article, all you need is to be registered or login on Mondaq.com. \n <\/p>\n

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In many divorce cases, the two largest assets are the
\nfamily home and the parties’ pensions. Pension funds are a
\nshareable asset which can be divided between you and your spouse in
\nthe event of divorce. Hannah Pike, a solicitor in Harrison
\nDrury’s divorce and family law team, looks at the options for
\ndealing with pensions.<\/strong><\/p>\n

Pension sharing in a divorce settlement can sometimes be a
\ndifficult issue to resolve, therefore it is recommended that you
\nseek legal advice on your entitlement to your spouse’s
\npension.<\/p>\n

There are two main types of pension schemes: defined benefit and
\ndefined contribution. A defined benefit pension pays you income in
\nretirement based on your salary and your length of service, whereas
\na defined contribution pension is a fund that you contribute into
\nthroughout your working life, often with your employer matching
\nyour contributions and those funds are invested on your behalf.<\/p>\n

How is the value of a pension calculated?<\/h3>\n

The starting point is to request the Cash Equivalent Transfer
\nValue (CETV) for all pensions directly from the pension provider.
\nThis figure represents the capital value of the pension on the date
\nthe CETV was issued. All pension providers will calculate transfer
\nvalues differently and there is no ‘one size fits all’
\napproach. CETVs of defined benefit pensions, can be undervalued in
\nterms of the benefits they provide upon retirement, compared to
\ndefined contribution CETVs.<\/p>\n

How are pensions divided?<\/h3>\n

Pensions can be shared between parties on divorce just like any
\nother assets such as the family home or savings. The court has the
\npower to make any order that it feels is appropriate in the
\ncircumstances, with the main aim of achieving a fair outcome for
\nboth parties.<\/p>\n

Some orders the court may make are as follows:<\/p>\n

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  • A pension sharing order \u2013<\/strong>\u00a0This is
    \nthe most common approach. A percentage of one spouse’s pension
    \nfunds is transferred into a pension fund in the other spouse’s
    \nname.<\/li>\n


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  • A pension attachment order
    \n\u2013<\/strong>\u00a0Whereas a pension sharing order divides up
    \nthe parties’ pension provision at the time of divorce, a
    \npension attachment order redirects part or all of one spouse’s
    \npension funds to the former spouse when it comes to be paid.<\/li>\n


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  • Pension offsetting \u2013<\/strong>\u00a0This is where
    \nthe pension holder retains their pension in full and the other
    \nspouse would retain a greater value of other joint assets, such as
    \nthe family home.<\/li>\n

    \n<\/ul>\n

    The content of this article is intended to provide a general
    \nguide to the subject matter. Specialist advice should be sought
    \nabout your specific circumstances.<\/em><\/p>\n<\/div>\n

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