Next to the family home a pension is often the next most valuable asset if not the most valuable asset in a case.  However, it is one that is constantly overlooked particularly in terms of the true value of the pension benefits and also how it should be taken into account. 

When dealing with a case involving pensions on a divorce there are three potential options:

• Pension sharing;

• Pension attachment (formerly known as earmarking); and

• Pension offsetting

Without a doubt pensions are difficult to understand.  That is why specialist advice is needed and often that will also involve a separate pension expert and involvement by an actuary.  There are a variety of different pensions that may need to be considered to include personal pensions, final salary schemes and other special types of pension schemes, for example, involving the NHS, the police, army pensions and on occasions footballers’ pensions.  An actuary can assess the options and present a report setting out the calculations and the relevant options to assist with the negotiations. 

Once matters are agreed, separate advice is often needed on how to actually implement the pension share or pension attachment.  It is obviously important that the relevant pension order is implemented properly and in a timely fashion.  Equally, separate advice can be taken about how best to rebuild a pension following the pension share and an independent financial adviser can assist with this.

We can advise and assist to ensure that there with full disclosure of the pension benefits and to obtain a report to look properly at the relevant outcome.  All too often cases are simply resolved on the basis that the capital element of the pension is divided between the parties and the actual real pension income is ignored.  What we need to consider with a party therefore is not only equality of division (where appropriate) but also equality of outcome.  What we need to consider with a party therefore is not only the division of the pension asset but also, importantly, the real outcome.

James Maguire & Co is a specialist firm of Family Law and Divorce law solicitors based in Wilmslow, Cheshire.  We offer legal advice to parties going through a divorce including the financial issues which flow from this (including pensions), linked business issues, international aspects and any relevant issues concerning the children.

We advise clients in the Wilmslow area and also to the surrounding areas of Alderley Edge, Bramhall, Hale, Altrincham, Manchester and the North West. We are also able to act for clients nationally and internationally subject to the jurisdiction of England and Wales.  For advice please contact James Maguire by telephone +44 (0) 1625 529456 or by email james.maguire@family-law