Pensions on divorce
Pensions are often one of the largest assets the Court will deal with alongside the family home and can become vital when negotiating a financial settlement in divorce. The Court has three basic options:
Pension sharing - this allows the Court to Order that a percentage of the pension fund held by one spouse is to be transferred to a pension fund for the other spouse. The percentage can range between 0 to 100%.
Pension attachment - the Court can Order that a spouse's pension is divided on the retirement of that spouse by directing the Trustees of the pension fund to pay a percentage of the lump sum to be paid out on retirement to the non pension spouse and/or a percentage of the annual pension income to the non pension spouse each year. Unlike a pension sharing Order, this does not create a clean break between the parties and is treated in a similar fashion to spousal maintenance.
No direct Order on the pension - if there is sufficient capital available or equity in the matrimonial home, the Court can choose to divide the other matrimonial assets unequally and leave the spouse who holds the pension with it intact.
Independent financial advice is necessary as well as legal advice to explore the best option to pursue.
If these matters effect you please complete a contact form or call us directly on 01483 302 000 or email samantha.jago@www.rhw.co.uk
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