Including pensions as an asset during your divorceJanuary 21, 2022
Why pensions should always be part of any divorce proceedings discussion.
When relationships break down, there are many different aspects to consider. It is a complex and stressful process, and the service our expert team offers is a vital one. We work hard to ensure that all our clients obtain an outcome and a settlement that is as beneficial as possible to everyone involved.
Yet recent research by the experts at Legal & General suggests that many people are losing out in a critical area of their divorce settlement, their pensions.
A complex and emotive issue
Pensions are one of the biggest assets, after property, that a couple has, and yet when they divorce it is an area that many fail to discuss.
This reluctance to discuss pensions as part of divorce proceedings should come as no surprise. Pensions are complex. Many people are reluctant to think about their post-employment future at the best of times. During the stresses and strains of divorce negotiation, many do not even consider whether they should have a share of their ex-partner’s pension or are even entitled to a share of their partners pension.
An unfair advantage
Women are particularly vulnerable. Often, they are at an immediate disadvantage going into any financial negotiations. Pay gaps combined with many years of part-time work whilst caring for children means that often they will have little or no pension to speak of.
When the divorce proceedings begin, their partner may be fiercely protective of their pension. Many are unwilling to discuss any division. Unfortunately, many legal advisers and judges do not want to jeopardise the divorce settlement for the sake of pushing the idea of a contentious pension split.
Take time to consider all the options
At Walker Foster, we are always open to considering anything we can to reach a settlement that secures everyone’s financial future. That may include having difficult conversations about pension splitting.
We will take the time to discuss all options with each party and also work to accurately value any pensions. In any divorce settlement, it is always better to be working towards a positive outcome that secures both parties’ financial futures. Pensions are a crucial part of that process.
To discover more about the advice and support we offer to couples entering into divorce proceedings, use the button below:
This article must not be construed as legal advice. All cases are different on their facts and you should consult with us directly on your case.