Financial Matters

Financial Advice on Breakdown of Relationships (Cont...)

Pensions

If your partner has a pension and you are worried that if you divorce you will not be entitled under this pension, don't worry.

Under the Pensions Act 1995 the courts have more powers to award you an interest in your partner's pension. The court can consider any benefits you might have received under your partner's pension scheme and which you will lose after the divorce.

The court can make what is referred to as a Pension Sharing Order. Effectively part of the pension arrangement members pension entitlement is locked off and transferred to the other party so that he or she has an independent pension.

• The court can order that the trustees or managers of the pension scheme should make payments to you of any benefit you might have received if the divorce had not happened (e.g. widows pension)
• Or order them to transfer to you any payments your partner is entitled to receive early, such as a lump sum payment.
• If your partner's pension includes a sum of money to be paid to a person of his or her choice on his or her death, then the court can order that your partner name you as that person or that the trustees or managers of the pension scheme pay the death benefit to you.
• The court can specify an amount that should be paid to you when the pension becomes due as long as this is not more than the pension holder is entitled to.

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The articles on legal topics published in these pages are for interest only and are necessarily general in their terms. You should not act (or refrain from acting) on the basis of the information given without specific advice, as the principles and laws concerned may change, and their application will vary according to the particular circumstances.