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
Every now and again a pension sharing order takes time to be implemented and I have had a recent spate of orders that have not completed in timely manner.
There is normally a good explanation as to why implementation has not occurred and typically there will be outstanding documentary requirements or the order is invalid due to a typing error, or incorrect policy number etc.
Another reason that often occurs is the payment of the fee for implementation has not been paid, particularly when the ex spouse is expected to pay half or all of the costs.
This should not be confused with delays that can occur once the implementation period has started. The timescale for implementation is four months from the date that all the documentation has been received and in my experience, orders tend to be completed very quickly in month one, or unfortunately, towards the end in month four.
I recently had an interesting discussion with one pensions administrator who was talking about taking the fee from the pension pot or from the credit of the ex spouse, or putting a block on them retiring so as to not delay the implementation of the pension sharing order. Whether they are able to do this is a mute point, but shows that once the order is in place the pension scheme is under an obligation to implement where possible.
If you are struggling to implement your pension sharing order or have any questions regarding it why not get in touch on 0800 0921229 or email phil@thedivorceifa.co.uk.
Tags: Implementation, Pension, Pension Sharing, pension sharing order | Posted in Pension Sharing, Pension Sharing Order |
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Posted September 26th, 2011
I have recently completed a pension sharing case where the length of time for the work from start to finish was 14 months. This is not unusual.
In this time the clients Cash Equivalent Transfer Values, and her share of them has increased by 12%. Not bad considering what the markets have done in the intervening period but more luck than judgement.
This is not always the case, and often the value of pensions etc can reduce over this period of time. So we have actually been quite lucky here.
With the implementation period being up to 4 months, it is important to get your Pension Sharing Order, Consent Order and any other documentation required by the ceding scheme to get the pension credit implemented as soon as possible. The quickest I have managed to get a pension
order and consent order implemented is less than three weeks from start to finish.
If you need assistance with your pension sharing why don’t you get in touch on 01204 663904 or email me Phil@thedivorceifa.co.uk
Tags: Cash Equivalent Transfer Value, Ceding Scheme, Pension Credit, Pension Order, Pension Sharing, Pension Sharing Case, pension sharing order, Pensions | Posted in Pension Sharing, Uncategorized |
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Posted July 12th, 2011
In one of my previous blogs “two pension schemes or one?” I regaled you with the woe filled story of the two pre-approved pension sharing orders which were subsequently rejected by the pension schemes involved.
They were arguing rather belatedly in my opinion that the two periods of service and two cash equivalent transfer values (CETVs) they had provided us with were actually on reflection part of only one scheme.
Happily we have managed to get them to see the error of their ways and they are now in process of implementing the two pension sharing orders. All’s well that ends well.
If you are struggling to implement your pension sharing order and would like some advice why not get in touch on 0800 092 1229 or email me phil@thedivorceifa.co.uk
Tags: Cash Equivalent Transfer Value, Pension Sharing, pension sharing order, Pension Sharing Orders | Posted in Pension Sharing |
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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 19th, 2011
I am currently dealing with an interesting case which involves two parts of the same scheme.
Unfortunately, at outset the clients received two different cash equivalent transfer values (under separate cover) and the assumption was made that the schemes were different. This was a fair assumption at the time given that one scheme provided for money purchase benefits and the other defined benefits. An actuarial report was undertaken and it was agreed that each scheme would be shared differently (100% for the money purchase / 31% for the defined benefit).
What happened next was ridiculous. The credit member’s solicitors sent the two pension sharing orders to the scheme involved for pre-approval before submission to court and they were approved. Only when the orders were submitted to the scheme for implementation were they rejected with the scheme confirming that only one pension sharing order can be set against one pension scheme. The two schemes were in fact two sections of the same scheme.
Now we are left with the situation where we have two pension benefits which the clients have agreed to share in different ways (100% and 31%) and a single pension sharing order is too blunt an instrument to deal with sharing the benefits differently. The scheme is insisting on one pension sharing order and they will not allow for the benefits to be shared differently.
We now have to look at alternatives. The key is to check each pension benefit carefully before proceeding.
If you are experiencing difficulties with your pension sharing order and would like some advice, please do not hesitate to contact me on 01204 663904 or email phil@thedivorceifa.co.uk
Tags: Actuarial Report, Cash Equivalent Transfer Value, Defined Benefit, Money Purchase, Pension Scheme, Pension Sharing, pension sharing order | Posted in Pension Sharing |
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Posted April 1st, 2011
In the last few weeks an increasing number of clients have approached with pension sharing orders which need implementing as the existing scheme is not prepared to offer an internal transfer and they do not know what to do.
They themselves are members of final salary pension schemes (usually Public Sector) and have found out at the last moment of the divorce that their existing pension scheme will not allow their pension share to be transferred in.
So what next? - The pension transfer has to go somewhere and it is up to the client to set up a new pension arrangement to accept the transfer.
If this is you and you would like advice from a Resolution Accredited Independent Financial Adviser on how best to approach the implementation of your pension sharing order then call me on 01204 663904 or email – phil@thedivorceifa.co.uk
Tags: Divorce, Final Salary Pension Schemes, internal transfer, Pension Scheme, Pension Sharing, pension sharing order, Pension Sharing Orders, Pension Transfer, Resolution Accredited Independent Financial Adviser | Posted in Pension Sharing |
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Posted March 29th, 2011
The period of appeal against a financial order is being extended from 14 to 21 days from 6 April 2011. This increase is set out here – http://www.justice.gov.uk/family/procrules/preview/parts/part_30.htm#IDAMDWJC
Therefore, it is essential to factor this issue into your discussions and arrange for Decree Absolute at least 28 days after the date of the pension sharing order.
In my opinion, very little thought is given to the timing of orders and this can be critical in ensuring that sufficient time is given to advising on the implementing of the pension sharing order.
If you need advice on pension sharing or on a pension sharing order, please do not hesitate to contact me on 01204 663904 or phil@thedivorceifa.co.uk
Tags: Pension Sharing, pension sharing order | Posted in Pension Sharing Order, Uncategorized |
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