Lowes Magazine Issue 115

PENSIONS

Advice and divorce

Options for pension assets division Offsetting Where the pension assets can be offset against other assets owned by the couple – so one of the couple might stay in the marital home in lieu of receiving part of their ex-spouse’s pension rights. Pension sharing orders Pension assets are divided at the time of divorce, effecting a clean financial break. Pensions attachments orders Here one individual’s pension provider pays an agreed amount direct to the former spouse when the pension payments start being drawn. The former spouse could lose out with this option if the person with the pension rights dies before retiring or the former spouse remarries. If you know anyone close to retirement who would benefit from advice on these important aspects of pensions, please have them call 0191 281 8811 to arrange a free consultation with a Lowes Consultant.

THE DIVORCE, DISSOLUTION AND SEPARATION bill, which proposed ‘no- fault divorce’ passed into Law following Royal Assent on 25 June 2020. This makes it possible for a divorce to be obtained without the need to prove “adultery, unreasonable behaviour or desertion” and will also prevent a divorce from being blocked by one party. Commentators have raised concerns that this will see a rise in people wanting to expedite ‘quick’ divorces. Where a couple’s joint assets are of a reasonable amount, seeking professional financial advice prior to, during and after any divorce case can help both to ensure any settlement is fair for all parties involved and with an individual’s financial position post divorce. The focus for couples is often on tangible assets but division of pensions is an area that can be overlooked and can have significant and long lasting financial implications. Women who have had a career break often have less ability to pay into a pension and so will be more dependent on their spouse’s pension in retirement.

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