Pensions on divorce

In many divorce settlements one party has substantial pension benefits that are to be taken into account in the settlement.

Often a cash equivalent transfer value is considered of equivalent worth as the same sum in readily realisable assets but there can be circumstances where this is not an appropriate basis for valuing or sharing the pension assets on divorce.

In particular there can be a sharp discontinuity in the value of certain scheme benefits just before and just after reaching the end of the period of service that entitles the member to an immediate pension.

Sometimes it is considered more appropriate to aim for equality of amount of pension rather than value.

OAC is often called on to advise on a split that meets the objectives and can take instruction from one party, joint instructions from both parties or as ordered by a Court. We can help devise a solution that best meets the requirements of each party.

Contact us to discuss how we can help with the divorce settlement.