Pensions can be dealt with in several ways:
- Pension Sharing. You are given a percentage share of your spouse’s pension fund, that’s transferred into your name.
- Pension offsetting. The value of your share of the pension fund is offset against other assets, such as the family home.
- Lump-sum payment. It is possible to receive a tax-free lump sum from the pension pot when your ex retires.
Whilst the State Pension is generally not shared between divorcing couples, there are complex rules around National Insurance contributions and protected payments.
Each couple’s finances are unique, and it is best to obtain independent financial advice. We work closely with a range of finance experts such as Chartered financial planners, actuaries and accountants to ensure you understand fully what will happen to your pensions following a split, ensuring that your future needs are met.