Divorce and Separation
Talking about divorce or separation isn’t easy. Proceedings bring with them not only emotional stress but also financial pressure. Whilst it’s very important to understand the financial ramifications of a divorce or separation, it can sometimes be highly confusing and since it carries the possibility of leaving your finances in a mess, we’d like to invite you to talk to us if you’re going through the process.
Pension Adjustment Orders – What is a Pensions Adjustment Order?
A Pensions Adjustment Order is served on the Trustees of the Pension Scheme and is binding. A Pensions Adjustment Order designates “part of the benefits which will be paid from the Scheme to a non member Spouse or person representing a dependent child”. The portion (part) of the Pension that is so designated is decided by the Courts.
Why would you need our help?
The division of pension benefits is usually, after the family home, the largest financial asset involved in a Divorce or Separation. Therefore it’s vital to ensure that you get the right financial advice on your portion of the order. There are of course the obvious concerns about ensuring, where feasible, that the proceeds are invested in accordance with your risk tolerance and financial requirements but there are also potential issues around the taxation treatment when it comes to drawing down the benefits as well as the implications of an order that involves a Defined Benefit pension scheme.