Pension sharing orders on divorce
Divorce is a stressful time. The end of any relationship is difficult, both emotionally and practically. Dividing up the assets you share as a married couple is one of the toughest parts of a separation.
Pension sharing isn’t always the first thing divorcing couples think of. Typically, most people focus on what will happen to the family home. But pensions are a huge asset and important when planning your future – so deciding what to do with them is extremely important.
There are three options for dividing up pensions as part of a divorce:
Sharing. Pension sharing is a formal agreement to divide your pension assets at the time of divorce. The courts work out exact percentages and the receiving party can become a member of the pension scheme or transfer the value to a new pension provider.
- Offsetting. The value of the pension is offset against other assets. For example, one spouse keeps their entire pension, and the other is given alternative assets (e.g. property or cash) of the same value.
- Earmarking. All, or part, of the pension is earmarked to be paid to one party when the other starts to draw pension benefits. There is no legal transfer of ownership.
LUNA Financial Planning’s approach is one of complete and genuine care for their clients wellbeing.
In our experience the financial and emotional challenges of a divorce require specialised planning. By planning before, during, and after the divorce you can achieve an objective, thoughtful and equitable settlement. We are happy to form a relationship with your legal consultant and between us we can work together. If you’re currently going through a divorce or about to start proceedings, you are probably already aware of the potential financial battles ahead. Your first port of call should be to engage the services of a Legal professional such as a qualified solicitor.