Posted January 6th, 2012
Cash Equivalent Values (CEVs) from the public sector are currently on hold.
We received further information from the actuaries we use (Bradshaw Dixon Moore) on the subject which is worth sharing here – http://www.ancillaryactuary.co.uk/home/2011/12/29/public-sector-pensions-green-shoots.html
What was interesting was that they had quite rightly in my opinion taken the decision not to continue with estimated values for pending reports. Although, this inconvenienced clients and solicitors it was an important stance to take.
I received this response from Peter Moore at BDM when further questioned.
“Publication of the transfer club factors vindicated our stance. We understand that the mortality rate changes for some schemes are material and vary by age and gender. We believe that this provides a reasonable guide as to how the CEVs will change, scheme by scheme; but want to see the actual scheme factors and some new basis valuations before we can be certain.
One of the big issues from our perspective is professional actuarial integrity. If an actuary writes a report and cannot be certain that key numbers and results are reasonable and correct, there is a professional obligation to clearly state the position. Our view is that although such a report can be produced and be compliant from an actuarial perspective, we do not feel that such a report would be acceptable to a court that would wish to place reliance on it as expert guidance – ie Expert Witness Reports. From our perspective, we want our reports to all be fully compliant and avoid reports with too many caveats.”
So if you are involved in a divorce where an old or estimated CEV is being used I would be very cautious. If you would like to discuss this issue in more depth, why not get in touch for a free, no obligation chat on 0800 092 1229 or email us advice@thedivorceifa.co.uk
Tags: Actuaries, Cash Equivalent Transfer Value, Cash Equivalent Values, CEV, CEVs, Divorce, Pensions, Pensions & divorce | Posted in Pensions & divorce |
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Posted December 27th, 2011
I have recently contacted by a UK national living in the US and divorcing in the USA. She wanted to return to the UK and implement a pension sharing order that the US court had applied against her husband’s UK pension and second state pension.
It is not possible for a UK pension scheme to implement an order made in a non UK court. Therefore it is often perceived that overseas divorces mean that a UK asset, such as a pension, cannot be subject to a pension sharing order.
However, in the Matrimonial and Family Proceedings Act 1984 (Part 3) there is a provision for a court order in the UK to be made on the back of a foreign divorce.
This can be done relatively easily where there is consent, although not impossible to obtain one without consent.
The key is to ensure that the foreign court is aware of the UK’s stance on foreign court orders, and to ensure that the Part 3 regulations are followed in accordance with the foreign divorce to ensure that the UK asset is dealt with appropriately.
So if you are divorcing abroad and it involves a UK asset and you are returning to the UK, why not get in touch and see if we can help with your pension sharing order. We have experience of working with clients moving back from all over the world including USA, Singapore, Australia, Canada and Europe. Call us now on 0800 0921229 or email phil@thedivorceifa.co.uk
Tags: Divorce, Overseas Divorce, Pension, Pension Sharing, pension sharing order | Posted in Pension Sharing |
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Posted December 20th, 2011
I am pleased to announce that the Resolution Accredited Independent Financial Advisers (IFAs) have been given a nice gold logo to use to distinguish them from the family lawyers and this is now proudly displayed on our website.
As one of only ten advisers in the North West with this designation I am extremely proud of this qualification.
If you would like advice in respect of pensions and your divorce financial settlement or pension sharing why not call us on 0800 0921229 or email phil@thedivorceifa.co.uk.
Tags: Divorce, Financial Settlement, IFA, IFAs, Pension, Pension Sharing, Resolution, Resolution Accredited, Resolution Accredited IFA, Resolution Accredited Independent Financial Adviser | Posted in Resolution Accreditation |
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Posted September 7th, 2011
I have recently been dealing with two client cases where the state pension entitlements had not or were not being factored into the divorce proceedings. What a difference in outcome when I was involved early in the proceedings made…
In the first case which was at the negotiation stage, I was asked by my client whether state pensions should be included as assets in the divorce. I confirmed that (in my opinion) they should be looked at and that at the very least a BR20 valuation of the second state pension should be undertaken.
Having instructed a new lawyer the BR20 valuation was undertaken and £118,000 of pension value later this “new” asset was brought into the pension and financial settlement discussions. Result – she was able to negotiate a higher percentage share of her husband’s non state pension arrangements to the tune of
c.£60,000.
In the second case, the client had been reading my website and rang me to query why in her financial settlement (she was at the implementation stage and had pension orders and consent order completed to prove it) it had not been taken into account. My response was that it should have been. Of course, in this case it was too late because the settlement had been reached. Could she have a lost out?
To avoid this scenario, why not get in touch with me and have a conversation about your pension entitlements on 0800 029 1229 or email me phil@thedivorceifa.co.uk
Tags: BR20, Divorce, Financial Settlement, Implementation, Pension, State Pensions | Posted in Pension Sharing |
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Posted July 19th, 2011
A recent ruling in a divorce case has raised the bar in relation to discretionary trusts in divorce. In Whaley v Whaley the court ruled that an offshore discretionary trust set up by Mr Whaley’s father should count towards the marital assets even though Mr Whaley was not a beneficiary.
The issue the court ruled on was that Mr Whaley although not a beneficiary would probably receive capital from the trust in lieu of the “lost” divorce settlement. Therefore, the court ruled the discretionary trust to be an asset of the marriage.
If your divorce involves trusts or trust planning it is important to get the right advice and guidance.
For a confidential chat why not call me on 0800 092 1229 or email phil@thedivorceifa.co.uk
Tags: Beneficiary, Discretionary Trust, Discretionary Trusts, Divorce, Settlement | Posted in Discretionary Trusts |
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Posted June 1st, 2011
Of all the enquiries I receive in a month the question “how much of the pension am I entitled to?” is easily the most common and as often seems the case in divorce matters there is no easy, straightforward or right answer. In fact, in a UK divorce it is at the discretion of the court.
So as an adviser I always keep an open mind as the legislation allows anything, pre, post, all, even future accrual to be taken into account. The case of N v F 2011 EWHC 586 is a useful reference.
Certain facts of the divorce will always play out – needs, length of marriage, ages, gender, health status, assets / resources including pensions, children/dependents, etc but it is up to the parties to negotiate the settlement together with their legal counsel.
In my opinion with regard to the pensions (rather than many other parts of the settlement), knowledge is power. It is better to be well briefed before starting negotiations so you have the best possible advantage.
If you would like to discuss your circumstances further in confidence, please call me on 0800 029 1229 or email me phil@thedivorceifa.co.uk
Tags: Divorce, Pensions, Pensions & divorce, What am I entitled to? | Posted in Pensions & divorce |
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Posted May 26th, 2011
Once a divorce is concluded there is often the temptation to tidy up your financial matters immediately as a fresh start. But could this inadvertently cause potential issues later which could be avoided?
For example, it is common for people to consolidate pensions into one scheme (perhaps a SIPP) without too much thought to the consequences. But if the existing scheme is subject to a pension sharing order then under the legislation it is not possible for another pension sharing order to be placed against it.
By transferring away to a new arrangement this “protection” is lost and should the client get divorced again there is a potential for this new scheme to have a pension sharing order placed against it. There is also the same issue when clients’ purchase annuities at retirement.
So would it be an idea to consolidate before settlement so that the protection of the pension sharing order remains.
If you are considering your options post divorce and would like some advice, please do not hesitate to contact me on 01204 663904 or email phil@thedivorceifa.co.uk
Tags: Consolidate, Divorce, Financial, Options Post Divorce, Pension Sharing, pension sharing order, Pensions, Settlement, SIPP | Posted in Pension Sharing |
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Posted May 12th, 2011
I am pleased to announce the availability of a financial planning tool for Divorce.
For the first time I have access to a divorce financial planning tool which will enable my clients to see how different settlements will affect them before agreeing to settle. For example, it is able to show the financial consequences of offsetting versus pension sharing or attachment. It can handle maintenance situations or map what happens if one party keeps the marital home and the other the income. Each scenario can be plotted against the other to show which is the most optimum and guidance can be given on the consequences.
I am not aware of any other such planning tool available in the UK and I believe it has particular relevance to Collaborative Law. You can view a dashboard screenshot of the software here which frankly does not do it justice but it gives a decent indication of how visually the software looks.
Effectively, what you are seeing is the two clients’ capital and income positions side by side and as any change is made (e.g. an increase in capital shared to one party) the visual picture changes showing how each client is affected.
It is a superb aid to informed negotiation and agreement.
If this is something you are interested in, please do not hesitate to contact me on 01204 663904 or email phil@thedivorceifa.co.uk
Tags: Collaborative Law, Divorce, Divorce Financial Planning, Divorce Financial Planning Tool, Financial Planning | Posted in Financial Planning |
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