Pension sharing: two bites of the cherry
A pension sharing order (PSO) cannot be varied at a future date. In addition, if you are awarded a PSO from your partner’s pension you cannot apply for a second PSO for the same marriage on the same pension. It’s therefore important to ensure you take good legal and financial advice during your divorce negotiations. If an error is made the PSO cannot be adjusted, and you do not get an opportunity to ask for additional payment in the future.
However,you can apply for a PSO at any time in the future to vary maintenance. One point to be aware of is that if your partner has a number of pensions which have had a previous PSO against them, but are at a later date are consolidated, the new arrangement can be challenged. You can apply for a PSO against this new arrangement, to capitalise maintenance.
As an example, assume your partner had a pension with both Prudential and Friends Life, and you received a PSO against both arrangements. Whilst the funds are with Prudential and Friends Life neither pension is available for any future share in respect of your divorce.
However, if at a later date the 2 pensions are consolidated into a new arrangement, you can then ask to capitalise maintenance by obtaining a PSO on the new arrangement.
If you are the spouse with the pension funds and your partner is seeking a PSO, my advice is to consolidate your pensions pre the PSO, and apply the PSO against the new arrangement. That will ensure you safeguard this pension against any further sharing.
If you are going through divorce and would like advice on your finances please call me for a no obligation discussion on 01932 698150.
photocredit:flickr/tanakawho
Read More
If you enjoyed this post, we recommend the following as additional reading.
There’s more to life and money than handbags and shoes
There’s more to life and money than handbags and shoes. Question from a client: “I’ve had this Inheritance and I’m wondering whether to use it to pay off my mortgage or whether to invest it” Such a sensible question. It shows she understands her options and wants to work out which one is best for…
How will a financial adviser charge?
If you’re looking to instruct a financial adviser, the cost of that advice will be something you will need to understand. There are a number of different ways an adviser may charge: A fixed fee An hourly fee As a percentage of your funds Or a mixture of the above Ensure you get full details…
A husband is for Christmas but not necessary for life!
I’m a dog lover and make regular donations to Dogs Trust, which is a charity rehoming abandoned dogs. Their catchphrase is “A dog is for life, not just for Christmas”. I thought a rather tongue in cheek similar phrase for my clients would be “A husband is for Christmas but not necessary for life!” At…