Pension in Settlement: Everything You Need to Know

Breaking up with someone is never easy. It is incredibly stressful. The last thing on your mind when you are going through a divorce is your pension.

The change in your relationship status can also have an impact on your pension especially if it has been recorded as an asset in the financial statements.

The government has provided details regarding what should be done with pension in case of a divorce. Here is a look at some of the things you might want to know about pension in settlement:

How Should The Pension Be Divided?

The division of the pension depends on the manner in which your divorce took place. In case the marriage lasted for a very short period and was between people who were in their twenties or thirties, there is no need to divide the pension even though its value is taken into consideration.

Pension tends to play a greater role in cases where the people divorcing are in their fifties. The authorities consider your financial position. There are certain things that need to be kept in mind as well during this process. These include:

• The age at which you are looking to retire
• What is the total amount that you will get in the form of pension once you have retired
• Your expected expenditures once you retire
• Do you have any alternative source of income after you retire

How The Court Handles This Issue

When you file for divorce, the court can settle the issue of pension in three ways. These include:

• Pension sharing: This refers to the case where you are given a percentage of your former spouse’s pension.
• Pension offsetting:This practice revolves around one partner getting compensation in return for pension for example one partner gets the house while the other one gets the pension.
• Pension earmarking: This is also referred to as pension attachment. This is akin to a maintenance payment whereby you pay the money directly to your former husband or wife.

What Needs To Be Your First Course Of Action?

In case of a divorce, the first thing that you need to do is calculate the pension that both you and your partner have. Keep in mind that there are different types of pensions and each one is handled differently by the court.

You need to look at pension as a part of the entire financial settlement. You need to make plans accordingly; for example, decide how you are going to plan your retirement and where you are going to live.

A solicitor who has experience in cases similar to these can provide you with assistance. Get in touch with us. Our team of experts have extensive experience in pension in divorce and separation cases. In addition to these we also offer other services which include:

• Hit and run accident claim
• Commercial lease
• Children law

You can contact us at 020 3417 3700 or visit our website for further information.