Pensions and Divorce Legal Expertise
Pensions and Divorce Solicitors
The law surrounding pensions is extremely complicated and it is absolutely paramount that expert advice is obtained from the outset. Your future financial security is fundamental following a divorce settlement which is why pensions and divorce are a speciality at McAlister Family Law.
When considering a financial settlement during the divorce process, the court takes into account each party’s pension provision. The court will consider pensions as part of a financial settlement on divorce and that they have the power to make orders adjusting parties’ pension entitlements.
McAlister Family Law is recognised as being a leader in this field having represented hundreds of clients with complex pension arrangements.
We have particular expertise in:
- Police pensions (representing police officers of all ranks and their spouses)
- Armed services and military
- NHS and local government schemes
- Teacher’s pensions
- Pension SIPPS
How Pensions Are Valued on Divorce
When considering the value of pension assets during a divorce, the court will have regard to the pension Cash Equivalent Transfer Value (CETV). This figure can be obtained by contacting your pension administrator.
For some schemes, the CETV can take significant time to obtain. We would advise that the CETV is requested as soon as possible to avoid any delay in the negotiations.
In certain circumstances, the CETV is the correct valuation to place on a pension to achieve a fair valuation of pension benefits.
In other cases, the CETV as calculated by the pension schemes would not achieve a fair result and in those cases, we would need to instruct a pension actuary to revalue the pension rights and offer further financial advice on the matter.
Not Sure on Your Options for Pensions and Divorce? We Can Help
We understand that any legal proceeding can be stressful and overwhelming, but our expert team is here to help you every step of the way. These are your options for pensions and divorce:
Offsetting
This is where a spouse’s claim against a pension is offset against other capital assets.
For example, rather than receive a share of the pension a spouse may prefer to take a greater slice of the house or savings.
If the pension is offset, then it is usually accepted by the court that a discount should be applied to the amount that would have been transferred under a pension-sharing order to reflect the early receipt of the benefit. This option will ensure that both the lump sum and income elements of their pension remain intact.
For offsetting to be an option, there would need to be sufficient capital to fully or partially buy out pension claims in a qualifying agreement.
Pension Attachment (Earmarking)
This is an order requiring a proportion of the pension lump sum and/or pension income or death in service grant to be paid to a spouse.
The pension provider is responsible for making the payments to the spouse directly. The order has to be expressed as a percentage or fraction and is different from a pension-sharing order as it applies to the value of your pension as of the date of your retirement.
Many spouses do not agree to this option, as they will lose benefits on remarriage.
Pension Sharing
This is where a percentage of your pension is transferred to your spouse.
A percentage of the transferor’s pension pot is extracted and placed into a pension pot for the receiving party. Depending on the scheme rules, this may need to be within the same fund or the transfer could be external. The rules on draw down are governed by the individual schemes.
This achieves a clean break and any contributions made by the officer to their pension following the pension sharing order will only increase their pension pot.
A pension-sharing order cannot be made if your divorce proceedings were commenced prior to 1 December 2000.
A pension-sharing order is available upon divorce or dissolution but not upon judicial separation.
The McAlister Family Law team understands the complexities surrounding pensions and divorce and can work in partnership with other financial specialists if required to make sure that you get a fair deal.
Reach out to Our Specialist Child Maintenance and Financial Support Team Today
Family law matters can bring financial uncertainties, which can be very overwhelming. Our team of child maintenance and financial support lawyers have extensive experience in financial matters, to help guide you along the way with confidence.
To chat with our team, call us on 0333 202 6433 or email us at hello@mcalisterfamilylaw.co.uk.
