For many couples who find themselves in the unfortunate position of going through a separation, quite often dealing with their assets and in particular their pension is the least of their worries. Understandably people often prioritise sorting out childcare arrangements and new homes before focusing their minds on an asset that will only benefit them in retirement.
But your pension whether it be a private or public sector fund is a valuable asset and should be treated carefully. A matrimonial agreement is a very useful document for parties separating to work towards. It is a document that severs the financial ties between the parties, providing that they have both disclosed their assets in a fully transparent and open manner and the information associated with their respective assets has been shared. This financial disclosure also includes pension details.
In looking at pensions in the context of a separation both parties need to disclose to each other their funds; Cash Equivalent Transfer Value. The rule of thumb in looking at pension shares usually involves the instruction of an actuary if the fund value is over £100,000. However, this is not always the case particularly if there is a mix of private and public funds to look at. The value of a pension during marriage is usually looked at in the time frame of ‘date of marriage- date of separation’.
If an actuary is ultimately instructed and a pension sharing value is agreed between the parties, same will be provided for in the matrimonial agreement. However, it is only after the extraction of the Decree Absolute the pension sharing order can be implemented. Until that date the parties are continuing to contribute to their funds. Hence if you are the party with the bigger fund that will ultimately be shared with your spouse, it would certainly be in your best interest to progress matters sooner rather than later protect your pension fund value.
At Worthingtons our Matrimonial team are more than happy to assist with any financial queries you have arising as a result of your separation. Partner and Head of Department, Naomi can be contacted on [email protected] or 02891811538.
