MY DIVORCE - MY WEALTH - Part 4: Can I Protect My Pension?
Pensions in Divorce
Pension assets in a high net worth divorce can often be one of the biggest assets that requires attention, particularly when:
- the structure of the pension assets can be complex if one of the parties has a final salary or defined benefit schemes
- if they have a pension in the public sector; or
- if a SIPP (Self-Invested Personal Pension) or SASS (Small Self-Administered Scheme) is involved.
Will my personal or pre-married pension assets be safe?
Divorcing clients often believe that pension assets will be ignored, and pension assets will be retained by each party. This is not the case.
The Family Court will consider pension division when looking at the overall division of the assets, and The Family Court can allow:
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Pension Sharing – transferring a percentage of one party’s pension out of their pension scheme into a different pension arrangement for the other party at the time of the divorce;
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Pension Earmarking – one party keeps their pension intact, but when they retire in the future, pension benefits are then given to the other party; and
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Pension Offsetting – one party keeps their pension intact, however they take less of the capital assets.
How can we help?
It is important that you obtain expert advice when dealing with pension division in divorce. Our team of specialist family solicitors are adept at providing you with the expert guidance you need.
For further information, or to make any enquiry, please Contact Us.
Alistair Dobson
Senior Associate Family Solicitor
