Pensions are often overlooked during divorce for various reasons, such as their complexity and lack of awareness, particularly among women, on their importance in financial discussions. Failing to address pensions during divorce proceedings can result in missing out on potential long-term income and financial security. It is crucial for couples going through a divorce to reach a financial settlement that includes all assets, including pensions.
A Pension Sharing Order can be included in the financial settlement, where a percentage share of one or more of the spouse’s pensions is transferred into the other spouse’s name. This helps achieve a fair division of assets and ensures both parties receive an equitable share of the pensions. Various pension schemes, including personal pensions, occupational schemes, and state pensions, are taken into account when determining a pension sharing order.
Obtaining a pension sharing order involves court approval, either through mutual agreement between parties or by court order if financial proceedings have occurred. The funds from a pension sharing order can either remain with the same provider or be transferred to a different fund based on individual circumstances. The pension sharing order becomes effective after the divorce is finalized, and it is essential to implement the order to avoid financial loss.
Before deciding on a pension sharing order or alternative options like pension offsetting or attachment orders, seeking legal and financial advice is crucial. Professional valuation of pensions is recommended to determine their true value and assess the best course of action. Stowe Family Law can provide guidance on obtaining a Pension Sharing Order, ensuring fair and comprehensive financial settlements during divorce.