Just like your home and other belongings, your pension is an asset that is shared when you get divorced or dissolve your civil partnership. Pensions can often add up to huge sums of money, and ensuring that this is protected is a vitally important part of the divorce process.
Pension sharing in divorce is a highly complex area; Major Family Law are the North East’s leading boutique family law firm and our specialist solicitors can provide you with low cost expert advice on all things to do with your divorce.
Our expert family law team frequently and regularly answer questions relating to:
- Armed forces pensions
- Teachers pensions
- NHS pensions
- Police pensions
As well as a multitude of other public service and private organisation pension types. For more information and advice around protecting your pension and your retirement, or any other divorce relating questions, please get in touch by calling 01661 824582 or by clicking on the button below. We offer a FREE 45-minute initial consultation with a leading North East Family Lawyer.
There are three arrangements that can be made to protect your pension should you decide to divorce.
- ‘Splitting’ the pension – this is also known as sharing the pension. This is the most common option where the pension(s) of both spousals are divided into an agreed proportion, or into the proportion set by the court.
- ‘Attachment’ of the pension – Also known as ‘earmarking the pension’; this is a court ordered action where a percentage of your pension is given to your ex-spouse when the pension is receivable – either as a lump sum or a monthly payment. This is now less common due to Clean Break Orders. Re-marriage or death will end the attachment.
- Offsetting – Offsetting is used in the total division of assets. For example, one party may get to keep the marital home whilst the other keeps their entire pension. In these cases, the pension is used to offset the value of assets received in the divorce.
When considering pensions and divorce, the value considered will be the lifetime value of the pension itself. As a pension pot grows due to investment, the perceived lifetime value of the pension will be considered in the pension sharing process. This is taken into consideration for fairness and ensuring that the needs of both parties are taken care of.
Major Family Law are a boutique family law firm in the North East, providing a leading service in all things relating to divorce. For advice and help in protecting your pension, please get in touch for your free 45-minute consultation.