Resolution recently reported that only 1 in 6 divorces contain any type of pension sharing; that translates to only 16.67% of divorces!
What that means is that if there are pension assets that are ignored one party can end up in poverty in retirement, and a standard of living is very different to what they were used to during their marriage. More often than not this is wives, who have taken time out from work to have children, and their pensions are not nearly as high as their husband’s due to a contribution gap.
So what are the reasons for parties ignoring pension assets?
When considering how to approach pensions within divorce parties have three options:
Why should expert advice be taken?
Parties should be aware of the potential future income they may lose rather than just focus on the here and now to avoid discrimination. If you would like advice with regard to your pension upon divorce, please do not hesitate to contact me to arrange a free initial consultation.