- A public sector pension is often the most valuable asset in a marriage. It has greater benefits than a defined contribution pension or money purchase scheme. It should not be overlooked on a divorce.
- Think of making a pension claim as akin to having life insurance and protection for your future.
- Getting this wrong could lead to poverty in retirement as opposed to the relative cash rich lifestyle your ex-spouse could be enjoying.
- You may be entitled to a share of your spouse’s pension that would provide you both with equal pension on retirement.
- In 2021, the McCloud judgment ruled that changes made to public sector pension schemes in 2015 were discriminatory and unlawful. This means that millions of public sector workers, including teachers, firefighters, and police officers, could be entitled to have their pensions recalculated under the more generous pre-2015 rules. The implication of the McCloud judgment may be important to your case and mean that your spouse’s pension is even more valuable.
- Don’t forget the other hidden benefits in a public sector pension such as death benefits and lump sum payments which you may be losing out on as a result of your divorce.
- Consider what your retirement plans are and how your situation will be different with or without a fair share of your ex- spouses’ pension. Take a longitudinal view and consider how the divorce may impact your financial situation, not just now but in the future and on retirement.
- Insist that your partner’s full pension information, including information relating to any McCloud adjustments and how these is disclosed at an early stage. It can take many months to obtain the information needed to assess how these may impact you and how long it will take for any adjustments to be made.
- Do not ignore the pensions issue. Many people choose not to make pension claims either out of a lack of interest, concern for the cost of obtaining a pension report, complexity, ignorance or failing to consider how their circumstances post- divorce and post- retirement may be impacted by the divorce.
Seek expert family law advice on the claims you may be entitled to make in divorce proceedings in relation to your spouse’s pension.
You will need advice because-
Complexity- pensions are complex structures and should be dealt with by expert family lawyers on divorce. A suitable actuary will be jointly instructed to recommend how the pension should be fairly shared on divorce.
Uncertainty: The final details of the McCloud remedy are still being ironed out, making it difficult to predict the precise impact on individual pensions and claims.
Timing: The implementation date for McCloud adjustments varies across schemes, further adding to the confusion.
Contact Us : Resolving McCloud-related issues might take time. A creative approach may be needed if you have a pension claim but need to finalise other aspects of your financial claims on divorce now.
Book: an initial telephone consultation of up to 20 minutes or a longer hour’s advice meeting about your divorce and pension issues by emailing joannehouston@just-family-law.com 01962 217640
Disclaimer: This blog post is for general informational purposes only and does not constitute legal advice. Please consult with a qualified family lawyer for specific guidance on your situation.
