When does pension sharing take place?
Pension sharing is often brought into a financial settlement when couples get divorced and after the divorce is finalised as it’s usually one of the most substantial assets that people own.
How are pension sharing amounts decided?
Usually, when deciding who gets what financially in a financial settlement, the court will aim to equally divide matrimonial assets using a pension sharing order. Of course, if an arrangement can be made outside of court, this may be slightly different, but in both instances, a pension is usually an asset that is divided.
If you are issued a pension sharing order by the court, this will decide how much of one person’s pension should be awarded to the other person by using a percentage of the pension.
What happens to a pension when it has been shared?
Once a pension has been split into two percentages (one for each person), the part that is transferred to an ex-spouse may be put into their existing pension, created as an extra pension in their ex-spouse’s pension or set up as a new scheme.
How long does it take for a pension to be shared?
Agreeing how much of a pension is to be shared is the time heavy element of pension sharing. Once an amount has been fixed using a pension sharing order, the pension provider has 4 months to transfer the percentage to the person receiving pension funds.
Can pension sharing arrangements be altered at a later date?
By sharing a pension, this creates a clean break order between ex-spouses. This means that once the pension has been split, there is no way to change or alter the amount of pension assigned to either person at a later date.
How to apply for pension sharing
If you know that you want to apply to divide your ex-spouse’s pension as part of your post-divorce financial settlement, speak to a specialist family law solicitor about pension sharing. They will talk you through the process of applying to the court for a pension sharing order and will assist you with assessing your marital assets so that these can be presented to the court.
Speak to a specialist family law solicitor
For advice about pension sharing in divorce, or any other aspect of family law, contact our specialist family law solicitors today using the contact numbers below:
Free family law clinics in Hinckley
We also run a free advice clinic at our Hinckley office on a weekly basis. For more information about this and to book an appointment to attend for free, contact Sarah or Lisa on: 01455 639 900.