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Divorce & Separation

Pensions and Divorce

If only one of you was saving into a pension, then what s/he was doing was providing for your mutual joint retirements. Now that you are separated that hasn’t changed!  It is likely that pensions will need to be shared. Sometimes, people would like to ‘ring fence' their pre and post relationship contributions.

It is essential that you work with PODE (Pensions on Divorce Expert) to work out a fair division of the current pensions including any state pensions.  Pensions are really complicated. Different pensions have different benefits. Don’t just assume that because the CETV (Cash Equivalent Transfer Values) are similar that they are the same. Very likely they are not.

For a quick and easy guide on pension division see the very helpful www.advicenow.org.uk/pensions.

The PODE will also consider any tax consequences. If the pensions are based abroad you will have to take advice about how to deal.

Sometimes clients say that they will give up their claim to pensions for another asset (usually the family home); this is known as offsetting. You will need special guidance from a PODE to do this as well as is possible (but beware you will need pension or some sort of income upon retirement).

I will help you collate all the information you need. Then I’ll help you choose a PODE and write the letter of instruction to ensure the right questions are asked of them.