Pension sharing order implementation charges – what happens if they are not paid?
Posted October 1st, 2010
This week I was contacted by a very concerned lady whose ex husband had not paid the implementation charge following their divorce and she wanted to know what she could do. Often, at settlement it will be agreed that 100% of the costs are paid by the other party and this will be seen as a small victory.
The implementation period will not start until all of the paperwork and the pension sharing order charges are paid. So it is important to get the charges paid as soon as possible to avoid delays. When you are relying on someone else to make payment this can be problematic.
The truth is that there is often very little that can be done as the costs of going back to court to enforce the pension sharing order can often be prohibitive. Inevitably, the only option is to pay the costs themselves.
So perhaps, prevention is the key. It is possible in some circumstances for the charges to borne from the cash equivalent transfer value. Alternatively, it might be appropriate to look to share the pension schemes which do not bear any charges. Yes, they do exist.
Here are some examples of the level of pension sharing costs involved:
UBS – £2,250 plus VAT
Police Pension Scheme- £400 plus VAT
Standard Life – £250
AVIVA – £0
With such amounts being charged and likelihood to rise in the future (see blog here) it is important to consider what the pension sharing order costs will be before agreeing the percentage split. Or deciding to pay these charges.
If this is something you would like further information on this please contact us.
