How To Protect Your Pension During A Divorce?

Splitting assets is often one of the most stressful parts of getting a divorce. It’s normal to worry about the house and bank accounts, but some of the most valuable assets that often go overlooked are pensions. 

It’s common for spouses to each have multiple pension pots of varying amounts, which can sometimes make splitting the pots tricky. Sometimes one spouse will have considerably more in their pension than their spouse and have a greater desire to protect it. 

In any case, your best course of action would be to contact a lawyer and financial advisor. They’ll be able to look over your specific case and give you advice. Typically, you have four choices when it comes to splitting your pension. In this article, we’re going to explain each of them.

Pension Sharing

Some people assume that a pension must be split 50/50, but this isn’t always the case. Pension sharing is where one party is given a percentage share of their former spouse’s pension pot. For example, the spouse who initially owned the pension may be awarded 80% of the pension pot while their spouse receives 20%. Pension sharing requires a Pension Sharing Order, which can be obtained from the court and will detail the exact percentages of the split.

Pension sharing is popular among spouses looking to protect their income in retirement. While it may not entitle you to 100% of the pension pot, it does award you a substantial amount and provides a clean break between you and your spouse.

Most pension sharing cases are not contested, as people generally come to an agreement through their solicitors. 

There are two primary ways a pension share can be received:

• The receiving party can become a member of their ex-spouse’s scheme in their own right (internal transfer)
• The receiving party can transfer the value to another pension arrangement in their own name (external transfer)

At Goodwins Family Law, we believe in helping our clients retain as much of their pension as they are entitled to. Our specialist lawyers will get to know your case and advise you on the most suitable option for you. We have over 25 years’ experience in divorce law and have garnered an excellent client satisfaction rate. 

Find out how we can help you by contacting our team.