The stress of the Christmas holidays often brings a surge in divorce proceedings in the new year. Amid the stress and emotions of a relationship breakdown, it is vital to keep a clear head especially when it comes to the division of marital assets on divorce.
Want more information? Read our in-depth guide on pension sharing on divorce here.
Research conducted by Royal London shows that when it comes to separation, pensions are being overlooked in the majority of divorce settlements. Parties tend to focus more on other aspects of a divorce like their living arrangements and the financial support for the children.
In the circumstances where pension assets are disregarded during a split, women are typically the losing out party. They are often the ones who take career breaks, give up jobs entirely or reduce their working hours to look after the family. As a result, they are less likely to have a decent retirement fund (if any at all) or a private pension in place which puts them at a huge disadvantage when it comes to their long-term financial security.
In terms of how pensions are dealt with on divorce, they can either be split or their value used to offset against other assets in a settlement. It is therefore very important that they are always taken into account to ensure that the division of finances between the parties is fair and reasonable.
There are a number of different approaches to tackle pension assets. All of the options depend on the circumstances of the couple concerned and require a Court Order to be effective. This is a very complex area of law and we would always recommend that you seek expert legal advice to understand how your pensions might be shared.
Should you require specialist advice, please contact a member of the Divorce Team at Sinclair Law on 01625 526 222 or alternatively click here to arrange your initial 30-minute free consultation. We would be happy to assist you.