Since divorce pension sharing was introduced in December 2000, pensions have become part of the assets that must be considered during a divorce settlement.
Getting a divorce can be very stressful, with lots of important decisions to be made and paperwork to be filled out during what is already a very emotional time.
One of the biggest tasks that must be tackled is fairly dividing up the couple’s assets. Assets can include property, money, possessions and pensions, anything under a shared name must be considered.
Dividing up a pension
Pension sharing orders are not a compulsory part of a divorce. A pension is an important asset that should be considered during a divorce, but there are different options for dividing it up.
The three main options for dividing a pension are sharing, offsetting and earmarking. A pension sharing order offers a clean break solution.
What is a Pension Sharing Order?
If one party of a divorcing couple has no pension entitlement, then a pension sharing order can be granted by the court to give shared rights to the other party’s pension through a legal arrangement.
How is the pension split?
A pension sharing order does not always require a pension to be split 50/50.
Both party’s assets and finances should be assessed in order to determine how to fairly split the pension. If a decision cannot be reached, then it will be down to the court to decide.
Why do I need a pension sharing order?
If a couple decide that they wish to share a pension, then even if they can amicably agree the percentage split, they will still need to apply to the court for a court order.
This is because pension providers and pension schemes are not allowed to divide or transfer a pension without direction from a court.
For further help or advice with dividing a pension during divorce proceedings, speak to our team of family law specialists here at Lund Bennett by giving our team a call on 0161 927 3118.