Pension Sharing

Pension sharing……!

…. worth considering or not?

Pensions may be fairly low on the list of matters to address when going through a divorce. However pensions can be one of the largest financial assets of a marriage, so not giving them proper consideration can be a costly mistake.

I DONT WANT TO SPEND THE TIME OR MONEY ON A PENSION SHARING REPORT.

The cost of the potential loss of many years of retirement income through an inappropriate pension share is likely to be far greater than the cost of seeking professional advice now. If the cost of a Pension Sharing Report is likely to outweigh the benefits, we will discuss this with you.

 

DO I REALLY NEED TO CONSIDER PENSIONS?

Ultimately any financial order must be approved by the Court before it becomes legally binding. If pensions are overlooked and the proposed settlement doesn’t appear fair, your financial order may be rejected by a Judge.

 

RETIREMENT IS SUCH A LONG WAY OFF ANALYSING THE PENSIONS TOO DEEPLY DOESNT SEEM WORTHWHILE.

While it is understandable that there are immediate needs to be addressed when separating finances, never forget that you will retire one day and will need an income for the rest of your life.

I THOUGHT IT WOULD BE EASIER JUST TO SHARE THE VALUES OF THE PENSIONS.

The primary function of pensions is to produce an income in retirement. Thus, the way they should be shared is to produce equal incomes in retirement and NOT to share them based on the capital value which is unlikely to create equal incomes.

SHOULD I CONSIDER THE STATE PENSION?

State Pension benefits often form a significant part of retirement benefits and we think that they should be included in a Pension Sharing Report. You can obtain your State Pension forecast statement on-line at https://www.gov.uk/state-pension-statement, or search ‘BR19’ or ‘State Pension forecast’.

 

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