Pensions are an important part of the financial mix. They are less important if the marriage is short or if both parties are young.
Getting information about pensions can lead to delays. The sooner it is done the better.
- Forecasts of basic state pension should be requested under form BR19 – click here.
- Details of occupational pensions or personal pensions should be obtained by writing to the pension provider with form P. This can be found on the HM Court services website.
See our financial toolbox for more useful links.
It is important to get independent financial advice about your pension requirements and how much you will need when you get to retirement age. See www.unbiased.co.uk.
On divorce, the courts can make certain orders to do with pensions including:
- a pension sharing order – this divides the value of a pension by creating a new pension fund for the recipient;
- a pension attachment order, against income – it is possible to divert the income stream or part of it from the pension after retirement;
- a pension attachment order against lump sum – it is possible to divert part or all of the lump sum payable on retirement;
- and a pension attachment order against death benefit – it is possible to order the death benefits (available before retirement) to be paid to the other spouse or ex-spouse (often used as security for maintenance).
The courts do not have a fixed approach to pensions. Much depends upon the individual case. Courts may equalise the values of pensions, leaving each party with the same value of pension.
This can be done, for example, by pension sharing order(s). Sometimes, courts will want to equalise the amount of pension that each spouse receives on retirement. Expert evidence will usually be obtained to work out how this can be done.