There doesn''t seem to be much info on the situation regarding division of pensions in a financial settlement if one partner is already retired. I was made redundant through early retirement a few years ago and the workplace pension I receive is my sole income. My STBX will not retire for at least 8 years and has built up a healthy pension pot. So I have two questions - would I be potentially entitled to a share of her pension pot in our settlement? And conversely would she be entitled to a share of my pension, even though it is in payment mode and her income is greater than mine?
You can not really look at pensions alone but need to look at the full picture, including asset split,ages, incomes etc. How long you were married including cohabition do you have any dependant children?
The main priority will be needs and affordability.
Pensions have to be seen in context of the position overall. Firstly all the assets need valuing, including the pension in payment. Then they are shared according to a checklist of factors.
IF there are enough assets to meet the "needs" of both parties and no exceptional contribution from one party the value of the matrimonial "pot" is likely to be shared 50:50. When there aren''t enough assets we refer back to the s 25 Matrimonial Causes Act 1973 checklist and usually the needs of both parties to capital and income will come at the top, or near the top, of the list. The aim isn''t a mathematical 50:50 split, rather to leave the parties on an equal footing.
Depending on both parties aspirations pensions can be shared so there is an adjustment to leave both parties in the same position or offset against other assets. For example, if your pension is more valuable than your wife''s or vice versa it can be offset against equity or savings.