A well respected, award winning social enterprise
Volunteer run - Government and charity funded
We help 50,000 people a year through divorce

01202 805020

Lines open: Monday to Friday 9am-5pm
Call for FREE expert advice & service info


What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


Do you need help sorting out a fair financial settlement?

Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.


Pension Sharing \"Safeguarded Rights\"

  • maggie
  • maggie's Avatar Posted by
  • Platinum Member
  • Platinum Member
More
09 Jan 08 #10287 by maggie
Topic started by maggie
I've just been told that any part of an occupational pension paid by the Government - usually called Protected Rights? - which is transferred to an ex-spouse on divorce is called safeguarded rights and can't be used for a tax free cash lump sum.
Can anyone confirm this?
I don't know what the usual ratio is - in my case the safeguarded rights are about one third of the CETV.

  • maggie
  • maggie's Avatar Posted by
  • Platinum Member
  • Platinum Member
More
09 Jan 08 #10302 by maggie
Reply from maggie
Not very clear that - sorry.
Since A-Day on 6 April 2006 the income from the protected rights portion of a pension fund can be taken as a 25% tax free lump sum - but not apparently if you get the protected rights portion via pension sharing on divorce - you can't take any of the protected rights [called safeguarded rights if you get them from pension sharing] -as tax free cash.
The CETV I got didn't show the amount that was safeguarded rights/not available as 25% cash and until yesterday no IFA has ever said I couldn't take 25% of the whole CETV as tax free cash.
Apparently this government wants to single out people getting pensions by pension sharing for worse treatment than everyone else.

  • Specialdad
  • Specialdad's Avatar
  • Platinum Member
  • Platinum Member
More
10 Jan 08 #10360 by Specialdad
Reply from Specialdad
Thats right safeguarded rights on divorce cant be taken as a lump sum.

  • maggie
  • maggie's Avatar Posted by
  • Platinum Member
  • Platinum Member
More
10 Jan 08 #10395 by maggie
Reply from maggie
Looks as though safeguarded rights restrictions are about to be blown out of the water in the new pensions bill www.parliament.uk/commons/lib/research/rp2007/rp07-094.pdf

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11