Getting divorced can be a challenging time, with many practical concerns to think about. What happens to your pension when you get divorced can greatly affect your future quality of life, so it is an important consideration in any divorce settlement. Here at Stuart Gordon Solicitors, we understand your concerns and strive to make things as clear and straightforward as possible for you.
We are a team of expert divorce and family law solicitors, with years of experience in handling even the most complex divorce and pensions cases. We will explain everything to you clearly and concisely and will always act in your best interests, so you can focus on moving on with your life. To discuss your specific circumstances with a member of our team, call us today on 0113 2444 999 or complete our online enquiry form and we will get back to you right away.
Pensions and Divorce Solicitors in Leeds
How your pension will be divided in divorce proceedings depends on a number of factors. However, regardless of your circumstances, your pension should form part of any financial settlement in a divorce or separation. Although you may have agreed on a settlement, this should be confirmed by a court order to ensure the protection of your interests. You may only share your pension with someone you are married to or in a civil partnership with – cohabiting couples cannot share their pensions if they separate. Because of the complex nature of pensions and divorce, it is always advisable to speak to a solicitor.
How will my Pension be Shared when I Divorce?
There are three main ways in which courts will divide pensions when a couple divorces. Each of these arrangements has its benefits, but ultimately the court will attempt to share your pensions in a way that is fair to both parties.
Pension sharing is where one party is apportioned part of the other's pension. The money that is received from the other party's pension pot is legally treated as belonging to the spouse it is apportioned to as a result of a pension sharing agreement.
Under a pension offsetting arrangement, the value of the pension is “offset” against other assets. A common example is where one party keeps the pension pot, and the other the house.
This is where some of your pension is paid to your former partner and is sometimes known as pension attachment. This acts in the same way as a maintenance payment and comes directly from your pension pot to your former spouse or civil partner. There is also the option to transfer a one-off lump sum rather than pay a smaller amount on a regular basis.
Determining which of these options is best for you can be complicated, but our team of solicitors will guide you through how each of these might affect your financial situation. Call us today for advice on your specific circumstances.
How will Divorce Affect my State Pension?
Your state pension may also be affected by divorce, and this will depend on the type of state pension you receive. Your basic state pension will not be shared if you divorce, however couples that have divorced may use their ex-partner’s National Insurance contributions to increase their state pension without affecting the basic state pension of their former partner.
Where you receive an additional state pension, this can be shared between you and your former partner. However, where you enter into another marriage or civil partnership, these rights are lost.
If you have a new state pension, this cannot be shared with your former spouse or civil partner.
Where you have a ‘protected payment’ – that is an additional payment you may get alongside your full state pension – the court may order that this be shared between you and your former partner.
If you are divorcing over 50, and want to understand how your pension will be affected, you can read our guide here.
Contact Stuart Gordon, Divorce Solicitors Leeds
Here at Stuart Gordon Solicitors, we know that you will have many questions about your divorce, divorce proceedings and indeed financial settlements, and we are here to help you every step of the way
In order to discuss your case with us, ask any questions, or set up a face to face meeting to take things further, please contact Stuart Gordon Solicitors today. We can be contacted by phone, email or via the website. We look forward to helping you. Call us on 0113 2444 999 to arrange a free initial consultation or click here to contact us online.