“Whilst divorce is an emotional time for all concerned, obtaining expert* advice, guidance and support is beneficial to not only avoid unsuitable outcomes but to also assist with creating your new life plan”….writes Paul Hoyle, Pensions and Divorce Adviser at True Bearing.
The truth is that divorce or dissolving your civil partnership can become a positive event in your life that can change you and your family for the better. It can be the beginning of a bright new chapter offering new opportunities and providing uplifting and empowering growth and change. With your financial adviser’s help, Life Planning can play an important part in making this objective a reality.
One important aspect behind this is making sure your financial well-being is ‘fairly’ secured during the divorce process, both for immediate needs and those in the future. As all assets including pension values (company, personal and state) should be included in any financial settlement if you divorce and accurate analysis of these is paramount to avoid errors and unfair outcomes.
How Do Pensions and Divorce Work?
How are the different types of pensions valued and which one should I keep or give up?
What is a ‘fair share’? Should the divorce pension valuation be based upon income or capital value? These are some of the most important pension and divorce questions that people looking at getting divorced need answers to. Even when a final agreement on a settlement is reached, e.g. ‘sharing’ a pension arrangement, this needs to be confirmed through a court order.
How do courts deal with pensions and divorce together?
Courts deal with divorce pension arrangements in one of three ways:
- Pension sharing. You give away, or are given, a percentage share of a pension arrangement
- Pension offsetting. The value of a pension is ‘offset’ against other assets
- Pension attachment/earmarking. You allocate, or are allocated, an amount of pension income and/or lump sum
But which divorce pension options are most appropriate for your circumstances?
“What happens to these rights if I decide to remarry or enter into another civil partnership?”
“What are the implications to any Will Planning I have made and how do I make sure pension values remain in the family bloodline to be inherited?”
“Who is best placed to advise upon the right solutions and help me develop my new life plan?”
If you require help with any of your divorce or pension planning needs, then please contact us for a no obligation meeting on 01247 260011
*Obtaining expert advice and guidance when valuing pension rights during divorce proceedings is crucial in making sure the most accurate assessment of each pension entitlement is performed so that a beneficial outcome is achieved for both parties. At True Bearing, we pride ourselves on the professional service we deliver to our clients, their legal advisers and qualified pension actuaries.