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 August 25th, 2012
Question: My husband is in receipt of a war disability pension. Is it possible to have a pension order placed against it?
Answer : Unfortunately you are not able to have a pension sharing order or an attachment order applied against the War Disability Pension. However, there will be main army pension benefits payable and it is possible to have a pension sharing order placed against these benefits. Given the extra income payable via the war disability pension, then with sensible discussion would it be possible to increase the pension sharing order under the main army scheme benefits.
In addition I see no reason why this would not count towards maintenance and a periodic payments order may be made.
Tags: Armed Forces, Disability, Divorce, Order, Pension, pension share, Pension Sharing, pension sharing order, Sharing, War | Posted in Divorce, Pension Attachment, Pension Sharing, Pension Sharing Orde, Resolution Accreditation, Resolution Accredited IFAs |
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Posted August 24th, 2012
My attention was drawn to an interesting Twitter debate recently with regard to 0% pension sharing orders. The premise being that this prevents any further comeback on maintenance variation by way of pension income.
My concern here is that this is heresay, however, it is possible for a 1% pension sharing order to be completed which would dispel any future claim on the pension. It should be noted that you cannot have a pension sharing order on a pension that already has a pension sharing order on it.
Practically though, how would a 1% transfer value work, and it also should be noted that the costs might outweigh any benefits. However, it could be argued that this is a reasonably innovative way of dealing with pension sharing.
Tags: Cash Equivalent Transfer Value, Claim, Debate, Divorce, Income, Order, Pension, Pensions & divorce, Resolution Accredited Independent Financial Adviser, Settlement, Sharing, Transfer, Twitter, Value | Posted in Divorce, Pension Attachment, Pension Protection Fund, Pension Sharing, Pension Sharing Order, Pensions & divorce, Resolution Accreditation, Resolution Accredited IFAs |
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Posted August 22nd, 2012
An interesting development with Divorce Lifeline – www.divorcelifeline.co.uk.
It is interesting to note some of the claims being made by the company in relation to pensions and also their credentials to be in this market in the first place.
However, there is a growing trend towards looking at the settlements that clients are getting and it is in the divorce solicitors best interests to look at how a pension settlement is arrived at.
As a Resolution Accredited Independent Financial Adviser, I do see many mistakes made and we are here to help.
http://www.cisionwire.com/sky-communications-international/r/divorce-solicitors-under-fire-,c9286689
Tags: Accredited, Adviser, Divorce, Financial, Financial Settlement, Independent, Order, Pension, Personal Pension, Resolution, Resolution Accredited Independent Financial Adviser, Settlement, Sharing, Solicitor | Posted in Divorce, Financial Advice, Pension Attachment, Pension Sharing, Pension Sharing Order, Pensions & divorce, Resolution Accreditation, Resolution Accredited IFAs |
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Posted August 21st, 2012
Question: The pension provider is refusing to implement the Pension Sharing Order without the signature of my ex spouse. Ours was an acrimonious divorce and he is extremely unlikely to comply with this request. What can I do?
Answer: Often Pension providers have a number of requirements to be completed by both parties, including the court documentation and other such requests, such as signing an indemnity by the ex spouse.
If it is not possible to do this then I would remind the Trustees of their obligations under the Court Order/Pension Sharing order and that it is their responsibility to implement the order in a timely manner. If they do not do so, threaten to report them to the Pension Regulator. This usually has the desired effect and hopefully your Order will be implemented promptly.
Tags: Advice, Court, Court Order, Divorce, Ex Spouse, Implementation Period, Implemented, Implementing, Order, Pension, Pension Regulator, Pension Sharing, pension sharing order, Pensions & divorce, Pensions and Divorce, Personal Pension, Settlement, Sharing, Spouse, Trustee, Trustees | Posted in Divorce, Financial Advice, Pension Attachment, Pension Sharing, Pension Sharing Order, Pensions & divorce |
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Posted March 19th, 2010
The prescribed method of valuing a pension for divorce purposes, whether the pension rights are to be subject to pension offsetting, pension attachment or pension sharing is the Cash Equivalent Transfer Value (CETV).
The CETV is the capital value of the pension rights as calculated by the scheme actuary or the pension provider. This valuation method is used where the pension is being accrued or is not yet in payment.
Where the pension is actually in payment, a different valuation basis needs to be used. This is the cash equivalent of benefit (CEB) calculation and it does give a capital value which can be shared, offset or earmarked. If you google the Martin-Dye v. Martin-Dye judgement you can find more information out on this valuation basis.
Neither calculation (CETV or CEB) is subject to standard actuarial methods and each defined benefit scheme will use a different valuation basis.
I cannot emphasis how important understanding this aspect of pensions and divorce is to maximising your settlement. Scrutinise the value to decide whether it represents fair value.
If you need further assistance with your CETV or CEB feel free to contact me for a confidential chat.
phil@thedivorceifa.co.uk or 0800 092 1229
Tags: Accrued, Actuarial Method, Asset, Attachment, Calculation, Cash Equivalent Transfer Value, CETV, Divorce, earmarking, Martin-Dye, offsetting, Pension, Pension in Payment, Pension Provider, Pension Rights, Scheme Actuary, Sharing, Valuation Method, Value | Posted in Transfer values |
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