Posted September 17th, 2012
http://www.ftadviser.com/2012/08/29/ifa-industry/your-business/solicitors-must-value-pension-sharing-orders-gyFqAgVriOGOvwtEinc5FO/article.html
The role of solicitors and mediators during divorce is well documented and shouldn’t be taken lightly or underestimated as many self representing clients find out to their cost.
However, aside from wrangling over custody arrangements, would you leave it to either professional party to value your house during a split of assets?
No? So why is it that little or no heed is often taken in divorce proceedings with regards to the pensions?
As I stated in the above article, there are many solicitors that I work with that do have the necessary skill set to enable you to achieve a fair outcome, often calling in the necessary professionals to assist with their advice.
I have recently been contacted by two claim companies and an independent solicitor looking at past settlements and wanting referrals from me for potential claims they can investigate. They are investigating whether the true value of the pensions has been ignored, overlooked or misunderstood as part of the overall settlement.
This is no coincidence and perhaps a sign of the times but 12 years after the legislation was passed bringing pension sharing into force I am still seeing big mistakes being made.
To avoid having to go through this with your pension sharing case then please get in touch now on 01204 663904.
Tags: Asset, Implementation, legislation, Pension, Pension Credit, Pension Sharing, pension sharing order, Pensions, Pensions & divorce, Pensions and Divorce, Settlement, share IFA, Sharing, Solicitor | Posted in Divorce, Financial Planning, Pension Sharing, Pension Sharing Order, Pensions & divorce |
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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 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 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 March 2nd, 2011
This week’s ruling by the European Court of Justice on gender and insurance may have some far reaching consequences in relation to pensions and divorce. See here – http://www.bbc.co.uk/news/business-12608777
It will be interesting to see how and if this will be implemented but potentially the areas of pensions and divorce it could affect are:
- Equalisation of pension incomes.
- Underlying Cash Equivalent Transfer Value Factors.
- Final Salary & Money Purchase benefits at retirement.
- Tax Free Cash Commutations.
- Duxbury calculations?
If you have any questions on pensions and divorce, please feel free to contact me on 0800 092 1229 or email me phil@thedivorceifa.co.uk
Tags: Annuities, Cash Equivalent Transfer Value, Duxbury calculations, Equalisation of Pension, Final Salary, Pensions, Pensions & divorce, Unisex Annuities | Posted in Pensions & divorce |
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Posted October 26th, 2010
New site launched to assist with the rule changes recently introduced to pensions.
These changes affect the amount that can be paid in – the annual allowance - and the amount you can hold in total in a pension – the lifetime allowance.
Find out more here - www.lifetimeallowance.co.uk
If you need any advice, please contact me.
Tags: Lifetime Allowance, Pension, Pensions | Posted in Pensions & divorce |
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Posted October 21st, 2010
The coalition government has announced sweeping changes to pensions and the allowances.
These changes affect the amount that can be paid in – the annual allowance - and the amount you can hold in total in a pension – the lifetime allowance.
Find out more here – www.annualallowance.co.uk
If you need any advice, please contact me.
Tags: annual allowance, Pensions | Posted in Pensions & divorce, Uncategorized |
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