QROPS

HI, has anyone had any experience with QROPS pensions. They are overseas pensions and my STBX has just had confirmation that all his private pensions have been accepted/transferred into this newish scheme that the government introduced.
All I know is you can transfer them from sterling to euros if required.
Is there any information about how divorce impacts on these types of pensions?
Any info gratefully received. supercali

Hi,

It would be useful if you had some further information on where the QROPs has been established and why?

Often with this type of pension scheme the jurisdiction of where it is based does not recognise orders from UK courts.

If this is the case, this will mean(assuming a UK marriage and divorce)that the value of the QROPs/ pension may have to be factored into your settlement but not used in your settlement.

Are there other assets of the marriage which can be used to offset the QROPs value?

If you require any further assistance, please post again.

Regards

Phil


Please note: Although I am a Resolution Accredited Independent Financial Adviser my comments are given here as general guidance ­­­­­­­­­­­­base­­­­­­­­­­­­d on the (often limited) information available and does not constitute financial advice. They should not be seen as a substitute for detailed financial and legal advice.

Thanks for responding, I understand about the financial advice stuff.
My STBX had 5 various private pensions which he transferred into 1 QROPS pension scheme set up by Abbey Financials I believe under a government initiative. I think it enables pension companies to change the denomination of currency, in my STBX's case he may wish to change his sterling pension into euros at some time in the future if he decides.
He has just told me that this pensions have been transferred in and it is worth £246k and yes we have 2 properties which can be monies can be offset, one our marital home in france and a second investment property in US.
I think maybe the company is a subsiduary of a UK company and we were married in UK, are english and applying for UK divorce as we have not changed our domicility.
Any further comments appreciated.

Thanks for the additional information.

This makes life much easier than dealing with 5 pensions.

I would suggest you consider the following:

1. Find out if the QROPS will allow orders to be placed on it by a UK court.
2. What risk is being taken in the QROPS - is it invested in higher risk investments.
3. Are these higher risk than you are prepared to accept? and could the value of the QROPS between now and Decree Absolute.
4.Ensure the valuation is fair (as you would for any other asset of the marriage - houses / business / etc.

More importantly, you should start to think about what you want to achieve overall from your settlement. This will be a balance between short term needs - housing / income and longer term needs - pension income / security in retirement.

Once you know what you want to achieve you can approach the negotiations with more confidence. What are you prepared to compromise on / what not?

Hope that helps. Any more questions, please post again.

Regards

Phil

Please note: Although I am a Resolution Accredited Independent Financial Adviser my comments are given here as general guidance ­­­­­­­­­­­­­base­­­­­­­­­­­­­d on the (often limited) information available and does not constitute financial advice. They should not be seen as a substitute for detailed financial and legal advice.