The Money and Pensions Service recently highlighted the fact that only four in ten UK adults realised a pension could form part of a divorce settlement, despite pensions being one of the most valuable assets you own.
Pensions should be treated like any other financial assets when a marriage or civil partnership ends. This can be particularly relevant with the gender pay gap, as women may have less generous pension provision.
There are various ways in which to deal with a pension fund:
- A pension sharing order transfers part of one person’s pension to the other
- Offsetting allows one party to keep their pension fund, while the other takes a bigger share of other assets, like the home
- With pension attachment or earmarking, each party gets an agreed share of income in due course
Couples who are not married or in a civil partnership have fewer legal rights. Please note also that the law in Scotland can differ from the rest of the UK.
We recommend speaking to a professional when it comes to assessing what a pension is worth. This involves looking at more than just the cash equivalent transfer value. If you would like to discuss what options would be best for you, contact us today.
