Spotlight on Pensions after divorce or separation
One case that may be considered by us as family lawyers or arbitrators is when a pension scheme is in financial difficulty. How then to fairly divide pension assets between separating couples?
The Pension Advisory Group have considered this problem in their report on Pensions. In the case of pension sharing as a method of fair financial dispute resolution, this can become more complicated when an occupational pension scheme is in financial difficulty.
Should this be the case, and such pension rights are held by one person following a divorce, there exists a mechanism for “valuation, disclosure and redistribution.” In this case, pension compensation sharing orders which operate in a similarly way to other types of pension sharing orders, but incorporate a pension compensation sharing annex.
This can become complex to follow, but such considerations are necessary for a robust and fair distribution of assets in divorce or separation cases.