Financial Advisor for Pension Share

Hi

I will be visiting a solicitor in a couple of weeks in order to start divorce proceedings in Scotland. My husband and I currently live is Scotland and are both retired and receiving our occupational pensions.

We have obtained our CETV's and have worked out that and I will be receiving about £186,000 out of his pot as part of the pension share.

My problem is that I now find that his company probably won't want to administer my share of his pot and this is my dilemma. Since I am retired, I obviously want to invest it and receive a monthly sum in order to survive. I don't even know if his company give me the money or does it have to be transferred to another reliable pension fund. How do you find out the names of reliable financial advisors qualified in dealing with pensions on divorce. I have absolutely no idea where to start. Any help would be fantastic as I have minimal understanding of the pension world - typical woman!!

Thanks muchly

I did pension sharing in England - and not a pension in payment - so no direct experience -
You'll know Scottish rules on pension sharing exclude any pension built up outside marriage so your proposed £186k share of his pension must exclude any of his pension accrued before your marriage?
The rules can have a weird effect when applied to a pension in payment:
from Scottish Law Society Journal Online
www.journalonline.co.uk/Magazine/51-5/1003019.aspx
"Pensions in payment......"

In England a Resolution trained and accredited IFA is best bet - not sure if that happens in Scotland.

Hi Maggie

Thanks for your reply. Seems difficulties always arise when you have a pension in payment. Luckily the whole fund is for the full length of our marriage, all 35 years. Even if my husband's scheme agree to administer my 'pot' I'm not even sure that it will give me the same rights as my husband. And if I have to transfer it out of the scheme, I will need a GOOD financial advice otherwise I fear that my financial future is a bit precarious, considering I am just about 65 years old. What with divorcing in Scotland and having pensions in payment, life is very interesting. Will be seeing a solicitor in a couple of weeks, but of course panic always sets in when you see light at the end of the tunnel then suddenly another obstacle gets in you way! Why can't life be simple??

I didn't go down the collaborative route -
www.scottish-collaborativelawyers.com/welcome/
wish we'd tried it - it's a round table jaw jaw not war war approach designed for those who can still stomach looking at and talking to their spouse.
For me the great benefit is hearing the other side's case argued out in the open [as opposed to secret/separate rooms/shuttle diplomacy with the FDR court hearing] and having a neutral divorce aware IFA to call on as part of the negotiations.

Hi,

Firstly, it is important that you have a specific goal in mind when negotiating pension shares.

It appears that your main goal is the provision of income in retirement. This is good because a pension in payment will only provide you with income (not Tax Free Cash). Most importantly, have you considered how much income you will need?

If the pension share has not been finalised yet it may be that you are entitled to more of it than you have stated. How has the £186k been calculated. Is this a straight 50%?

Once the share has been finalised you will need to consider how it will be dealt with. If as you suggest it must be externally transferred you will have a number of choices of receiving pension schemes.

A review of these options together with a understanding of your needs will enable a decent IFA to guide you on the most appropriate route.

Result = a income in your own name for the rest of your life?

I can of course help you with this. If you want any further assistance, please post again or send me a PM.

Regards

Phil

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.