Pension Transfers And Sharing After Divorce
A lot of people have pensions that are tied into joint accounts or are dependent on being part of a wedded partnership. However, this can be complicated by a couple getting divorced. This is why it is worth looking into pension transfers and sharing after divorce to see what options are available and best suited to you and your ex-partner.
As the name suggests, pension sharing involves the funds being split between the two former partners. The benefit for this is that each individual has their own share, that they are then able to manage their funds independently.
In order to do this, you need to file for a pension sharing order (PSO) with the court, and it will be the court that decides the amount that each partner will receive.
The funds can include company benefits, state benefits, as well as any personal pension schemes. Once the court decides on the value to be transferred from these funds, this can either be paid into an existing scheme or a new one can be created.
The cost of arranging this can be done via legal representatives or through a fixed fee online.
An alternative to PSOs is transferring. For example, a former partner may off-set the sale of assets such as a family home. This can be a practical arrangement due to the fact that the partner may need to re-home themselves and their children, or if they live alone, it may be better for them to downsize and move to a smaller property.
While on paper, this may sound simple, transferring assets and sharing pensions can involve some complex arrangements. This can be done without legal representation, but this can involve some potential pitfalls.
This is why we recommend talking to us. As well as being able to guide you through the options available to you, we can help you through what can be a difficult and stressful emotional experience.
Our motto has always been “big enough to specialise, small enough to care.” For more information and to discuss your needs in more detail, please contact us today so that we can go over your pension options in more detail.