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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.


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Pension sharing

  • maisymoos
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28 Mar 12 #320464 by maisymoos
Topic started by maisymoos
My final hearing judgement gave me 47% of husbands pension fund. There are 8 different pensions making up the total fund.

How do we decide which ones to transfer? I assume costs of doing so should be a primary consideration. Do all schemes charge for transfering? Of the 8 pension schemes two are occupational the rest are personal. I also assume it is probably simplier for me to have the personal ones?

  • ian conlon actuary
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28 Mar 12 #320484 by ian conlon actuary
Reply from ian conlon actuary
All public sector and some private sector pension schemes provide you with the option of a benefit within the scheme, this issue should be explored before deciding as it is the most important in terms of the impact on the benefist you will get.
Yes, the issue of charges, both cost of drafting the sharing order and cost of implementing are also a factor.
Also need to consider what the underlying assets are in any of the money purchase type pensions are.
At the very least, you need a financial advisor to assist you with this.
Ian

  • The Divorce IFA
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28 Mar 12 #320495 by The Divorce IFA
Reply from The Divorce IFA
Hi,

I note your points and it probably is simpler to share the personal ones and cheaper.

But is it in your financial best interest to do so. As Ian states some occupational schemes will offer you an internal transfer.

Where this is on offer you will get a benefit in the scheme which in my experience is usually much better than the corresponding pension that can be sourced from the open market.

So here this could be very beneficial to you.

Also, there might be hidden benefits in your ex husbands pensions that you cannot benefit from and he would lose if you share them.

So it might be better financially for you to share some of these pensions and vice versa.

In addition, costs play a part. Sharing 8 pensions will mean higher costs than sharing 1 or 2.

I would argue that you need a competent financial adviser to review all 8 pots and confirm which are best for you to share and which are best for him to keep.

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28 Mar 12 #320521 by maisymoos
Reply from maisymoos
Thank you for replying Ian and Phil.

Do the costs of pension sharing come out of the pension pot? or do I need to find the cash to pay them now?

Thank you

  • The Divorce IFA
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29 Mar 12 #320578 by The Divorce IFA
Reply from The Divorce IFA
Hi,

This depends. Some schemes will let the costs be taken from the transfer values but in my experience these are the minority.

Most ask for payment up front and will not start implementing the pension sharing orders without this and a bunch of other documentation.

Such costs can vary dramatically between schemes. Going back to my previous post a thorough review would check this and confirm which schemes would be most valuable to you and what the associated costs would be.

DM me if you want to know how I might approach this.

Regards

Phil

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