PENSIONS AND DIVORCE

In our view correct financial analysis for either or both parties, on divorce or separation, is essential to assess asset and income splits.

Very rarely for example, is correct application of tax treatments on various assets and income taken into account. This can result in either an unfair settlement or financial disadvantage to both parties. Generally your solicitor may not deal with any of these detailed aspects.

Of particular importance, pension assets on divorce can often represent a large part of an estate and in many instances in the past it may have been undervalued! If this area is not correctly addressed by you, or your solicitors, (who often do not have enough or any understanding of pensions) then it could potentially lead to a significant loss of benefits you might otherwise have obtained. This is perhaps of even more importance to women.

Legislation has made it clear that Pension Rights must be taken into account in a divorce settlement. The provisions in the relevant Act refer to the valuations being based on methods using Cash Equivalent Transfer Values (CETV).

This value is calculated on a basis set by the Scheme Actuary of the Occupational Pension Scheme and, although appropriate in some situations, in others, it may seriously undervalue the pension and associated benefits.

This value may not take into account any discretionary benefits and could be distorted by the funding position of the scheme.

In addition, it does not look at the problem from the viewpoint of the spouse, and treats the members as a leaver, which often is not the case. Thus the whole pension issue needs to be looked at in more detail to ensure that all relevant points are considered and explained to you.

Note for Women

Despite the recent legislation aimed at helping women receive the fair share of the pension, this is still commonly overlooked. Women who are often without pension provision and indeed may have greater interest in the real value of pension benefits will find our reports invaluable.

This can often lead to thousands, even tens of thousands, of pounds in increased assets being realised. Women also need to be aware that any pension share settlement is sufficient to lift them over the Minimum Income Guarantee (MIG) as offered by the State. General financial guidance regarding matrimonial assets and splits is part of our expertise.

Many financial advisers, accountants and solicitors around the country come to Regent to use our analysis and advice regarding divorce and financial reconstruction on behalf of their clients.

Please see More Information for further details about the System and Report available to you. For further information or advice please call us or complete the Enquiry Form.