![]() ![]() They only start to receive it when the former spouse or civil partner starts taking the pension. Pensions attachment (“pensions earmarking” in Scotland)Ī percentage of a pension is earmarked for the other member of the divorcing couple. Deferred lump sum (not Scotland)Ī deferred lump sum is a court order requiring a person to pay a percentage of their tax-free pension lump sum to their former spouse on retirement. This also requires a court to make an order. If one of you is older and already receiving a pension, then deferred pension sharing can give you the option to share the pension at a later date. What happens depends on the rules of the scheme. The person who receives a share of the pension can either become a member of their former partner’s pension scheme, or transfer the value of the scheme to another pension. The pension does not have to be divided 50/50 and a court works out the exact percentages. This is a legally binding agreement to split a pension at the time of divorce. So for example, you may get a bigger share of the family home in exchange for a share of your ex-partner’s pension. Instead, it is offset against the value of other assets. Here the pension is not actually split at all. This list below breaks down the options that may be available, depending on the circumstances: 1. In other circumstances you may only receive a percentage share of the pension when your former spouse or civil partner has retired.Ĭontact a financial adviser or solicitor before you attempt to split a pension, as the rules can be complex. ![]() In some cases, pensions can be transferred immediately. The right one for you will depend on the rules of the pension scheme that you are splitting, as well as your age and employment status. There are various options to split pensions as part of a divorce or dissolution settlement. You can discover more about the financial implications of divorce in our article here. In England, Wales and Northern Ireland, the value of all workplace and private pensions is included in divorce settlements, whether they were built up before or during a marriage or civil partnership. Only the value of pensions you have built up during your marriage or civil partnership is taken into account. The rules about which pensions should be divided differ in Scotland from those in the rest of the UK. When negotiating a financial settlement, the value of these should be taken into account. These might include sums that would be paid to you or your children on a spouse’s death, which may cease with divorce. Scheme administrators have an obligation to provide these details.īe aware of any other pension benefits that might be available to a spouse or civil partner under these schemes. This includes the cash equivalent transfer value (CETV) of any final salary pensions and a completed “Form E financial-disclosure”. You will need to know the recent values of your and your partner’s pensions. Any portion of your basic state pension that was built up under the additional state pension rules before April 2016.Personal schemes, including self-invested personal pensions (SIPPs) and stakeholder pensions.Some preparation therefore needs to be done before you can divide your pensions in a divorce or dissolution of a civil partnership.īoth parties need to have a list of all the different pension assets that they hold, and have obtained a copy of the rules for each pension plan. Many of us now retire with multiple pension pot s from different employers, and some may have private schemes as well. ![]() Related content: How do I protect my money in a divorce? Preparing to divide pensions
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