How your pension could be affected if you decide to divorce your partner
Many people approaching retirement age may be considering a divorce. In fact, over 15,000 of people who separate from their partners every year are over the age of 60 – a figure seven times higher than it was in the 1950s.
Splitting from someone to whom you may have been married for a long time will be an emotional and complicated choice with many things to consider. One aspect that may need to be contemplated is the impact it will have on your hard-earned pension pot.
In a divorce, your pension may be seen as an asset no different from any other. It could be treated the same way your home, vehicles or possessions are.
Although it is not always part of the divorce settlement, it is particularly common in cases where one partner has opted to stay at home and raise children. As they were unable to contribute to their own pension, a court may feel they are entitled to a share of yours.
You risk losing a significant amount of money if you do not prepare for this. However, by instructing a knowledgeable divorce solicitor like ours at Magnus Legal, we can advise you about how your pension may be affected and offer some viable solutions.
For instance, if the court decides this is the case, a solicitor can assist with the Pension Sharing Order. This is when you are required to share the amount of your pension with your spouse. It is the most common outcome when a pension becomes part of the settlement.
The exact amount that is shared will depend on a number of variables: the length of the marriage, each person’s financial standing, children who may be affected, your ages, and much more. A lawyer will help represent your case so the pension is divided fairly with your interests in mind.
You may also have the option to offset the cost against other assets of a similar value. If you have a pension you want to retain, a solicitor may be able to help you negotiate a deal whereby your spouse receives other assets to the value of your pension.
Regardless of how it is done, having to split your pension can be quite devastating, especially for people who have worked all their lives to store this money for when they retire. It can often be one of the most valuable assets you own as most middle-aged people have around £53,000 saved.
Magnus Legal’s team can help you through the stressful process during this difficult time. Visit their website today.
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