Pension Sharing Death – What can happen if the financial settlement has not been completed?
This week I was asked the following question by someone contacting me on a financial matter on divorce.
It is a recurring theme where trying to cut costs in the short term means a substantial loss in the future.
“Can I apply for a pension share order after the death of my former spouse? Although on my divorce paperwork I have a tick at (3) financial order,order under section 24b 25b or 25co25c of the act of 1973(pension sharing/attachment order so does this mean I already have one?”
Answer – Pension Sharing Death
(After I had checked with a solicitor contact of mine) I was able to give her the bad news!
Unfortunately, a pension share cannot be effected after death.
Make sure the financial settlement is completed before proceeding to decree absolute
It turns out no financial application before the court had been completed. Simply a tick in the prayer box to the petition that it is intended to apply. A bit of a nightmare really and not easy to explain to someone stressing about the fact her ex husband (of 20 years+) had died. To make matters worse it seems his new girlfriend of (18 months) is likely to benefit from his pension.
Certainly more questions than answers at this stage.
How did it come about that the absolute went through without a form A being issued or a consent order being agreed? Was the lady represented? No she was not and nor was her husband and here in lines the problem.
Was there any pending financial agreements – even voluntary financial support. Is she a dependent? Potentially even though she cannot share (it is my understanding) she might still have a remedy as a dependent against the estate. Any minor children certainly have an Inheritance Provision for Family and Dependants Act 1975 claim . Is there a Will?
Potential Outcome – Pension Sharing Death
Either way urgent legal advice and contentious probate advice is needed for her and for the children which is complex but there may be claims to be made for remedies but it won’t be under the MCA 1973. c How could this has been avoided? By simply holding back the decree absolute which is something that a solicitor would have done for her as a matter of course.
Now there is a potentially expensive attempt to claim against the estate with a unknown outcome when had the financial settlement been looked at properly it would have all been concluded and his death irrelevant.
