What happens to my private pension after a divorce?

By Amber River True Bearing

23 Feb 2023

Pensions And Divorce

In the UK, divorce is a legal process that involves the end of a marriage. According to the ONS, one in five couples end their marriage before their ten year wedding anniversary, which is a slight decrease from historical data previously released by them. However, for those couples who do choose to separate, it is never an easy decision to make.

The concept of ‘No fault divorce’ was brought in by the Divorce, Dissolution and Separation Act 2020, which means that from 6th April 2022, divorcing couples do not need to provide a reason nor provide blame. It also removes the possibility of a contested divorce where one spouse must wait for the other to agree.

Overall, this has made it easier but financial provisions can still be complicated and cause grief and stress between divorcing couples. This is largely because people are not aware of how their finances and pensions may be split during the process.

PENSIONS AND DIVORCE

Divorce can have a major impact on pensions and retirement planning.

Many people do not know that their pensions could be included in their financial settlement in the event of a divorce (or dissolution of a civil partnership).

Additionally, even when a settlement is agreed, any agreement on ‘sharing’ pension arrangements will still need to be confirmed by a court order.

HOW WILL MY PRIVATE PENSION BE VALUED IN THE EVENT OF DIVORCE?

When a marriage or civil partnership ends, a court will normally deal with the pension arrangements in one of the following ways. The court will consider factors such as the length of marriage and each partner’s financial circumstances when calculating pension arrangements.

You are given or give away a percentage share of a pension arrangement – known as a Pension Sharing order

The value of a pension will be offset against the value of other assets – known as Pension Offsetting

You are allocated, or will allocate, an amount of pension and/or lump sum – known as Pension Earmarking

An Independent Financial Planner can complement the services of a solicitor to make sure that you avoid common pitfalls during a divorce settlement. This is why it is so important to consult an expert when valuing pension rights to make sure you understand what happens to your pension afterwards.

CONTACT US

If you would like to speak to one of our Independent Financial Advisers about your pension, or any other aspect of financial planning then please contact us or call 01257 260011.

Latest news

1

Blackpool Council submits plans for town centre Multiversity Multiversity Sketch

Blackpool Council submits plans for town centre Multiversity

29 Nov 2023

2

Amanda’s personality shines on Lancashire Business Day 231124LBVLancashireDayEventweb 9898

Amanda’s personality shines on Lancashire Business Day

28 Nov 2023

3

Don't judge, not everybody's got a great brand, ok? Laura Weldon Studio LWD

Don't judge, not everybody's got a great brand, ok?

27 Nov 2023

4

Happy Creative appointed to support Blackpool business academies Happy Creative and the Blackpool Unlimited team.jpg.jpg

Happy Creative appointed to support Blackpool business academies

30 Nov 2023

5

Innovation with inspiration and industry Neil Burrows Burnley College

Innovation with inspiration and industry

30 Nov 2023

2664LBD980x120gif
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
Help to Grow Management Course
Collaboration v3.png.png
LBV Hub Seminars
31 Oct 2023 - 14 Feb 2024

Help to Grow Management Course

University of Central Lancashire, School, Online and face-to-face , UCLan, PR1 2HE

09:30 - 11:30

Discover the power of BNI - Business Networking in Preston
Preston.png.png
LBV Hub Networking
30 Nov 2023

Discover the power of BNI - Business Networking in Preston

Samlesbury Preston Hotel, Preston New Road, Samlesbury, PR5 0UL

09:30 - 11:00

Business Networking in Longridge - BNI Longridge
EVENT LISTING SIZING Longridge.png.png
LBV Hub Networking
30 Nov 2023

Business Networking in Longridge - BNI Longridge

Samlesbury Hotel, Longridge, PR3 2TU

09:30 - 11:00

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
30 Nov 2023

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
30 Nov 2023

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
01 Dec 2023

Business Networking in Preston - BNI Brunch

Samlesbury Hotel, Preston, PR5 0UL

09:30 - 11:00

Business Networking in Blackburn - BNI Vista
EVENT LISTING Networking In Halifax (1).png.png
LBV Hub Networking
05 Dec 2023

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, Blackburn, BB1 3AL

06:45 - 08:30

Using your existing Pension to invest in Commercial property
Chris Montgomery SmgTvepind4 Unsplash
LBV Hub Webinar
05 Dec 2023

Using your existing Pension to invest in Commercial property

Zoom, Burnley, BB11 1JG

09:00 - 09:45

Business Networking in Lancaster - Eden Business Network
Eden Business Network.png.png
LBV Hub Networking
06 Dec 2023

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

The Business Network Central & East Lancashire
LBV Hub Networking
07 Dec 2023

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:30

Twas the night before ransomware
Event Graphic 3.jpg.jpg
LBV Hub Seminars
07 Dec 2023 - 07 Dec 2023

Twas the night before ransomware

The Lowry Theatre, Salford Quays, M50 3AZ

14:00 - 17:00

Discover the power of BNI - Business Networking in Preston
Preston.png.png
LBV Hub Networking
07 Dec 2023

Discover the power of BNI - Business Networking in Preston

Samlesbury Preston Hotel, Preston New Road, Samlesbury, PR5 0UL

09:30 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV Advertising Visual NovDec
Subscribe now

Weekly news bulletin