Pensions sharing on divorce
For many people, their pension is one of the most valuable assets they have. The value of any pension assets must be taken into account in any divorce settlement or on the dissolution of any civil partnership.
Key facts
- Pension sharing orders provide a 'clean break' solution.
- There are slightly different rules for pension sharing orders in Scotland than there is in England and Wales.
- There are two ways in which an individual's ex-spouse/civil partner can receive a pension share - become a member of the pension scheme in their own right, or - transfer to another pension arrangement in their own name.
- The former spouse/civil partner of the individual will be entitled to a pension credit equal to the value of the pension debit against the member's pension rights.
- For many their pension is one of the most valuable assets they have. The value of any pension assets must be taken into account in any divorce settlement or on the dissolution of any civil partnership.
Disclaimer
The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.
All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.