In a recent article in the Daily Telegraph it was reported that the number of divorcing couples sharing their pensions dropped by a third last year to a ten year low.
Many pensions are invested stocks and shares and, in spite of stock markets falling during the early part of the pandemic, the general trend is for stock markets to increase in value significantly over five or ten years, a relatively short period so far as pensions are concerned.
Defined benefit pensions, those which provide a guaranteed income in retirement, particularly those in the public sector, can frequently be worth more than the average property.
It is not uncommon for solicitors to be faced with clients who say that they have agreed not to touch their spouse’s pension, but when investigations are undertaken the true value of that pension proves to be very significant. Failing to take into account pensions can mean that one party receives a substantially unfair financial settlement as a result of their divorce and can leave them suffering hardship in retirement when they do not have sufficient income to enable them to meet their needs.
All spouses considering a financial settlement following divorce should obtain advice from an experienced family lawyer to ensure that what can be the most significant asset in any family relationship is not overlooked.
FJG have significant experience in advising clients going through divorce in relation to different types of pensions and how they can be utilised to achieve a fair financial settlement. Please contact us by calling 01206 835320, emailing [email protected] or by using the enquiry form at the top of this page.