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Try it nowPensions and divorce: what to consider
According to the latest ONS statistics on divorces in England and Wales, 42% of marriages now end up in divorce, making it even more important for men and women to protect themselves financially.
If you are living with your partner but are not married or in a civil partnership, they will not be entitled to any of your pension benefits if you separate.
However, your pension is one of many assets that will be taken into account when working out a financial settlement if you get divorced or there is a dissolution of your civil partnership.
The Court can award part or all of your pension to your ex-spouse either by a Pension Attachment Order or a Pension Sharing Order.
Pension Attachment Order
- Allocates an amount of your pension when it is put into payment (specified by the Court) to your ex-spouse
- The amount will be held in the Scheme and paid when you take your Scheme benefits
- The amount could also include a portion of your lump-sum death benefit and/or your retirement lump sum
- Your ex-spouse would no longer be entitled their share of the benefits if you die or (in most cases) if they remarried
- If your ex-spouse dies before you, your pension would revert to its full amount.
Pension Sharing Order
- Allocates a one-off payment (specified by the Court) from your pension benefits to your ex-spouse as part of your divorce settlement
- Once the payment has been made, your benefits are reduced by the same proportion and your ex-spouse will have no further claim to your pension
- The amount allocated to your ex-spouse (known as a ‘pension credit’) can be used to buy pension benefits for your ex-spouse, either in the Scheme or another pension provider
- These pension benefits are completely separate to yours, so your ex-spouse does not have to take their benefits at the same time you do. They could also continue to be paid after your death or if your ex-spouse remarried
- If your ex-spouse dies before you, your pension would not revert to its full amount.
The Court will require details of your pension benefits and some of the information you may need is:
- A CETV (Cash Equivalent Transfer Value)
- The amount of lump sum death benefit
- Details of any dependant’s pension
- Your period of membership
We can only provide information on your Scheme membership to you, your solicitor and the Court.
Matt Riley
Manager
Matt joined Zedra Governance Limited (formerly PTL) in January 2008 having previously worked for Mercer Limited, Hazell Carr and Prudential.
As a Manager for the company's Birmingham Office, Matt’s responsibilities include working closely with Client Directors and individually liaising with Employers, Trustees and Members to ensure the smooth running of their pension schemes. Matt’s current portfolio of clients covers ongoing, paid-up and winding-up schemes. In addition, Matt has experience of schemes that have transferred or are in the process of transferring to the Pension Protection Fund and Financial Assistance Scheme. Matt also works closely with clients in relation to risk registers and internal controls.
Matt particularly enjoys resolving issues in a fair and pragmatic way ensuring that the right result is reached for the member or employer.
Sam Burden
Client Director
Sam Burden joined Zedra Governance (formerly PTL) in 2022. He is an Accredited Professional Pension Trustee (AMAPPT) and an Associate of the Pensions Management Institute (APMI)
Sam has more than 25 years’ experience in the pensions industry gained with WTW, KPMG, and Standard Life working with a wide range of pension schemes and sponsoring employers. His trustee appointments include DB, DC and hybrid pension schemes and he has experience of handling a broad range of projects relating to the management of pension schemes.
Beyond his pensions experience Sam is a former Birmingham City Councillor where he chaired the audit committee and a current charity trustee.
Payam Kazemian
Client Director
Payam Kazemian joined Zedra Governance Limited (formerly PTL Governance Limited) in 2021. He is an Accredited Professional Pension Trustee (AMAPPT) and an Associate of the Pensions Management Institute (APMI).
Payam has more than 17 years of experience in the pensions industry. Through his current role as a professional trustee, as well as previously as a pension’s de-risking and investment structuring expert at financial institutions including Goldman Sachs and Deutsche Bank, he has had overall responsibility for creating investment, de-risking, journey planning, and governance solutions for a wide range of UK DB pension schemes. He currently holds a number of board positions (as Chair of Trustees) and sole trustee in his professional trustee capacity. Payam has been involved with a number of pensions projects including pensions buy-in, pensions buy-out, GMP equalisation, investment strategy reviews, and dialogue with the pensions regulator. Payam looks to create and believes in a collaborative relationship between the sponsor, the trustee, and all other parties involved as this results in best member outcomes and helps deliver pragmatic solutions for scheme. Aside from his pensions experience, Payam holds a Ph.D. in Materials Science from the University of Cambridge.
