FAQS
A Pension Sharing Order is where the courts, as part of you divorce settlement, can order your spouse to split their pension with you. In some instances a pension provider will not accept a transfer of this nature, that is why it is imperative that you seek independent financial advice as part of this process. This is where we can help. Not only will this take away a large amount of stress but also you can be sure that you are receiving the correct and proper financial guidance.
Absolutely. Enlisting the services of an independent financial advisor should be at the top of your list of priorities. Surprisingly it is often overlooked as the situation is a stressful time with so many aspects to be dealt with. A financial advisor who specialises in pensions can be invaluable in providing impartial advice and tailoring a solution that suits your financial situation.
If you are going through a divorce and are concerned about the division of financial assets, you may be wondering about pension sharing orders and any associated time limits. The good news is that there are no time limits for pension sharing orders, and they can even be applied for after the divorce has been finalized. The only requirement is evidence that the divorce proceedings have started or have been finalized. However, there are time constraints for implementing the pension sharing order, which differ between England and Wales and Scotland. In England the implementation is 4 months whereas in Scotland it is 2 months. It is always advisable to seek the advice of a financial advisor to ensure a smooth process. Overall, while it is not necessary to rush the pension sharing order process, getting it done sooner rather than later can help alleviate stress and allow you to focus on the next chapter of your life.
If a member of the party passes away after the pension order has been finalised, but before the pension payments have started, the pension payments will be made to the nominee or legal heir of the deceased member. The nominee or legal heir will have to provide a death certificate and other relevant documents to the concerned authorities in order to receive the pension payments. The amount of pension payments will be the same as what the deceased member would have received if he or she was alive. However, if the member passes away after the pension payments have started, the pension will stop and no further payments will be made to the nominee or legal heir.
If you divorced without obtaining a financial remedy order, either party can make a claim on their ex-spouse’s pension, regardless of how long ago the divorce occurred. To avoid unpleasant surprises about your pension or retirement benefits later on, it is critical to request a financial consent order from the court at the time of your divorce. You can speak to an experienced financial adviser today to discuss how they can assist you with your enquiry.
An internal transfer means that the recipient’s current pension provider will form a new pension plan for them that is completely separate from their ex’s pension. Some public-sector pensions only permit internal transfers.
An external transfer means that the pension credit will be transferred to a separate pension plan. The recipient selects which plan to contribute to. This could be an existing pension plan or one put up by the beneficiary in order to receive the pension credit. You must ensure that the suggested pension plan will take a pension credit from your ex’s pension provider. Most providers accept a Pension Sharing Order credit. It’s important to speak to a qualified Financial Adviser early in the process so they are able to advise accordingly.
The pension debit/credit does not occur immediately once the court has granted your consent order and made your pension sharing order.The pension sharing order arrangement only becomes legally enforceable (or “takes effect”) on the later of these two dates:
• the date of the final order (previously known as the decree absolute)
• or 28 days from the date of the pension sharing order (7 days after the time limit for appealing the order has expired)
Yes, a pension sharing order may cover numerous pensions and may specify a different percentage to be taken from each pension plan.
