During divorce proceedings, we often negotiate over what is tangible such as the house or the car, however many people are not aware that one of the main assets which is also considered is the pension pot.
Considering pension values on divorce?
Throughout the marriage, one or both partners may contribute to their pension fund and so it a substantial asset that requires careful consideration upon a separation.
This article centres on pensions within divorce proceedings, and more importantly why this area should not be dismissed as a minor asset class.
Alun Jones Family Law can offer unparalleled levels of dedication in terms of fighting for what is fair and just when it comes to litigating at the family courts.
During divorce proceedings, we often negotiate over what is tangible such as the house or the car, however many people are not aware that one of the main assets which is also considered is the pension pot.
Throughout the marriage, one or both partners may contribute to their pension fund and so it a substantial asset that requires careful consideration upon a separation.
This article centres on pensions within divorce proceedings, and more importantly why this area should not be dismissed as a minor asset class.
Why should I pay particular attention to the pension pot on divorce?
It is not uncommon for pension values to be the most significant asset a couple has when entering a divorce, particularly for the generation that are now labelled the silver separators
One partner may hold specific pension schemes, entitling them to pensionable assets such as final year salary or cash balances, which are often very valuable.
Therefore, when considering the parties' finances on divorce, we have to determine how a partners' needs will be met when they reach pensionable age. This is particularly the case in light of the expectation that life expectancies are set to rise.
If one partner was the sole income provider, this does not mean that the non-earning partner is excluded from a proportion of the pension pot.
Indeed most couple’s needs encountered on retirement are often equal and so the pension value needs to be considered as an asset for division among both partners, regardless of who earned it.
It is therefore advised that DIY divorces may not be the best option in the case of complex pension matters. It may even be one partner’s intention to rush through proceedings so that the pension value is not considered or inspected too carefully.
Our solicitors like at AJFL will always ensure pensions are a key consideration upon divorce.
How do I know how much my partner’s pension is worth?
In view of the fact that some pensions can be worth more than the family home, it is essential that the pension values are correctly assessed.
Upon divorce, in addition to looking at all of the assets available for division your solicitor should also assess the pensions both you and your partner own.
In order to do this, independent financial advisors and accountants are often used to assist your solicitor so that the figures are accurate and up to date.
This will ensure when negotiating a settlement that you have a clear view over your partners' finances.
What happens if my partner refuses to divide some their pension value on divorce?
Outright refusal from your partner does not automatically mean that you will not receive a fair share of the pension pot. Just like other key assets considered within divorce proceedings, they will be redistributed based on need.
If you partner is adamant and unwilling to negotiate within an out of court process, then you may have no option but to seek financial relief from the courts to form a settlement. The courts will then review the facts of the case and make an order.
I need more information regarding pensions and divorce what should I do?
We operate a friendly and approachable family law practice based within Cardiff.
Our divorce solicitors have vast experience in handling key assets upon divorce and we can talk you through all your options, and present solutions tailored for you.
