How can our pension and divorce lawyers help?
Navigating a divorce can be challenging at the best of times, and finances can be particularly stressful. Among these assets, pensions are one of the most consequential, making pension division an important part of the negotiation process.
Our experienced family lawyers understand the importance of achieving a positive settlement, and securing your financial future. We will work with you to help navigate this stressful period, and achieve a fair settlement that protects your interests.
No two relationships or family situations are alike, and the same is true of your finances. We take care to explain everything in simple terms, guiding you through the process and tailoring our advice to your specific circumstances.
What our clients said about us?
Why choose Parfitt Cresswell as your pension and divorce solicitors?
We offer a complimentary initial consultation
It’s a great way to understand your options, get to know us better and make a more informed decision on whether we are the firm for you.
Our fees are straightforward, transparent and honest
After your initial consultation, you will know what your costs are likely to be. Depending on your needs, it may be possible to provide a fixed fee and in circumstances where it is not, a clear estimate will be provided which will be kept under close review.
We are honest, genuine people with an assertive and confident edge
We know how to assertively achieve results and to promote a positive resolution. We do the right thing by you. Not just for today, but for the future too.
We are proud of our rankings and feedback
Our clients often describe our service as “professional,” “friendly,” “a pleasure to deal with,” “first-class,” and “would use again.” But don’t just take our word for it; read their reviews on the independent site, ReviewSolicitors, here.
We are fully authorised and regulated by the SRA
This means we adhere to the highest professional and ethical standards set by the Solicitors Regulation Authority. You can be confident that your matter is being handled with integrity, care and full accountability.
We make law accessible
We believe that transparency and understanding are key to a good working relationship. We will endeavour to keep you informed of the latest legal updates and policy changes, in clear terms and without the jargon.
Meet our divorce and pension lawyers & legal experts
London, Berkshire, Kent, Surrey and Sussex
Frequently Asked Questions
We understand that the finances of a divorce can be complex and emotionally challenging. Below are some common questions our clients often ask us:
How are pensions divided during a divorce?
In England & Wales, pensions form part of the financial settlement alongside assets like property or savings, and must be considered alongside other assets.
The court has several mechanisms to divide pensions fairly:
- Pension Sharing Orders: A percentage of one spouse’s shareable pension rights is transferred outright to the other spouse. The beneficiary gains full entitlement, and remains protected even in the event of the original holder’s bankruptcy. This can apply to both occupational and personal pensions, as well as additional state pensions, excluding the basic state pension.
- Pension Offsetting: One spouse retains their pension, while the other receives equivalent value in other assets (e.g., a larger share of property). However, because pensions often don’t equate pound-for-pound with capital assets, actuarial advice is strongly recommended for this option.
- Pension Attachment Orders: Also known as earmarking, these require the pension scheme operator to pay specified sums to the other spouse, whether as income, a lump sum deferred until pension drawdown, or as a benefit after the death of the pension holder. These orders are less secure than sharing orders, as they can be affected by bankruptcy, but an application can be made to vary them at any time.
The court will rely on the pension’s Cash Equivalent Transfer Value (CETV) for valuation. Due to the complexities of various scheme types, consulting with a solicitor is essential for ensuring long-term income equality.
When and how do pension orders take effect?
Pension Sharing Orders apply where the divorce or nullity petition was filed on or after 1st December 2000. For earlier petitions, sharing may still be possible only if the decree nisi (now called the conditional order) is rescinded before decree absolute is granted.
Once the decree absolute (now called the final order) is granted, the pension sharing order becomes enforceable. Pension trustees must implement it within four months of that order.
Pension Sharing Orders are final, and cannot be altered after the final order is granted. Attachment Orders, however, can be varied at any time, and provide either regular income, deferred lump sum, or ‘death-in-service’ benefits.
Why is actuarial advice important when dividing pensions in a divorce?
Pensions are intricate financial instruments with various types of benefits, restrictions, and long-term implications. Legal agreements like offsetting—where pensions are traded for other assets—may seem straightforward, but they don’t always ensure equitable outcomes in later life.
Actuarial advice is important for seeking an accurate valuation, as different schemes and rules can affect the future value of pension benefits. It also ensures that both parties have equitable income in retirement, looking at factors like longevity and your financial goals to make sure that the pension’s future potential is properly accounted for.
Want to know more?
Get your free copy of our The Good Divorce Guide.