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Splitting Your Pensions When Getting A Divorce

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Bringing Your Pension Pot To The Divorce Table

Splitting Your Pensions When Getting A Divorce

It isn’t an unusual occurrence to see a pension pot get split during a divorce. In fact, according to¬†Salisbury House Wealth, the pension pot is now the second highest value asset in a divorce settlement. With this in mind, statistics from the MOJ revealed that 18% of divorces involve someone’s pension being split.

In the past year over 15,500 divorcees were forced to split their pension with a former spouse. This is due to them struggling to find a financial settlement without sharing their pension pot.

The Two Options

However, there are two options for divorcing couples to take when they are seeking to split their pension.

The first option is a Pension Sharing Order. If you and your partner decided to split your pension, the Court would issue a Pension Sharing Order that would outline the set amount to be transferred to your former spouse, providing a clean break between the parties. The value of each transfer would be determined by the court the day before the Pension Sharing Order comes into effect.

The second option is a Pension Attachment Order. This option is a type of maintenance order which means that the pension pot will remain with one side of the relationship but once the other half begins to take out their retirement fund, part of or all of the fund would be paid to them. The court only rule for a Pension Attachment Order to be made on a very small minority of cases.

If you have any questions regarding the topic, don’t hesitate to contact us!

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