In case of divorce or dissolution, after the family home, the pension can prove to be the biggest asset. There are multiple ways to split pensions, so it’s a wise step to understand the options before deciding what’s best suitable for your case. Family Mediation service in Southampton can also help in this process. You can consult a Family Mediation service in Southampton for such needs.
Pensions you can divide
You must get a list of all the different pensions that a person can have, and you should also get a copy of the rules for each scheme. The things that can exactly be divided is dependent on where the person is in the UK for divorce or dissolution of civil partnership.
In England, Wales or Northern Ireland
The total value of the pensions built up by each party is taken into consideration. This means the pensions that a person or his or her ex-partner built up while they were married or were in a civil partnership as well as all of the pensions, excluding the basic State Pension.
The total value of the pensions that both the parties have both built up during the marriage or civil partnership is taken into consideration. This implies that any amount built up after the ‘date of separation’ or before the marriage or civil partnership doesn’t count.
How you can split pensions
Pension sharing: Each party gets a percentage share of any one or more of the ex-partner’s pensions. This amount is either transferred into a pension in one’s name or a person can also join the ex-partner’s pension scheme. In case the pension is transferred to a person and he or she has no own pension, he or she will have to set one up.
Pensions offsetting: The pension value is offset against other assets. For instance, a person may get a bigger share of the family home in exchange for the ex-partner keeping their pension.
Deferred pension sharing: This is put to use in case the ex-partner’s pension is being shared. This includes the situation where a person has already retired and is receiving the pension, while other party hasn’t retired and is too young for being paid a pension. Both the parties make an agreement for sharing the pension at a later date. As this can get more complicated in arrangement than an ordinary pension sharing order, it may have higher legal costs.
Deferred lump sum: A lump sum payment is given from one’s ex-partner’s pension when he or she retires.
Pensions attachment order: People are provided with some part of the ex-partner’s pension when it starts being paid to them. A given party can get some of the pension income, the lump sum or both of them. But a person can’t get pension payments before the ex-partner has started to take his or her pension.