In 2010 the number of people choosing to divorce rose for the first time in many years and during the same year the number of financial settlements reached within divorce proceedings increased as well exceeding 80,000 for that year.
Since December 2000 spouses have had the right to apply for Pension Sharing Orders against the others pension funds within divorce proceedings. A Pension Sharing Order allows for one spouse to receive a credit (into a pension fund of their choice) from the other spouse’s pension fund. Prior to 2000 it was only possible to offset a pension fund against the value of other available matrimonial assets or seek a share of the income once the pension was in payment.
The inclusion of Pension Sharing Orders has increased steadily since 2000. The most profound effect of such orders is likely to be on older couples whose pension funds could be the largest and most significant asset to be divided in the divorce process this could leave spouses with a smaller retirement fund than they expected. With the population living longer and divorce rates increasing it is important that the right legal and financial advice is obtained for your personal circumstances.
For more information about marital breakdown and how it can effect your pension funds please contact Vanessa Cozens (Partner and Solicitor) or Sandra Marshall (FILEX) on 01491570900 or at Vanessa@thpsolicitors.co.uk