Splitting the Pensions
Divorce is something that is absolutely uncalled for. It breaks down a person emotionally. After the divorce, the time comes when the former spouses need to divide their financial assets. One of the most important financial assets which play a significant role in securing the future of the spouses is the pension. It is wonderful to know the value you will be getting once the divorce is settled because then you can plan the investments that will help you to create a wonderful future. There are several ways in which the pension can get divided.
Write Down The Pensions That Can Be Divided
Knowing which pensions can be divided gives you the opportunity to plan your future finances in an organized manner. So, look to get a paper and a pen so that you can write down all the pensions you and your ex-spouse have. Without any doubt, writing down the pensions will help you when you go out in order to get informed about the rules and regulations the schemes have while divided the pension and the time the whole procedure might take. This might lessen your time as well because you would know which organisations you need to visit. Thus, the first step would be to write down the pension schemes.
Your Location Matters
What pensions can be divided and how it will be divided depends upon where you live in the United Kingdom. If you are in Scotland then the pension accumulated by you and your ex-spouse during your marriage or civil relationship then only those pensions will get divided. But, in case you are in England, Wales or Northern Ireland then the total pension accumulated by you and your spouse in your lifetime will get divided. So, you need to know which rules are applicable in your area regarding the division of pension.
Different Ways of Dividing Pensions
You will be entitled to a certain percentage of your spouse’s pension in pension sharing. This percentage will be sent to a pension in your name. But, in order for that to happen, you need to have an account at the pension scheme of your ex-spouse. In case you do not have an account then you need to open it in order to have the pension transferred. Remember, you will not receive the money in cash so it is eminent that you need to have that account.
In this scenario, you can offset the value of the pension with any other asset. You may not be inclined to share a portion of your pension with your ex-spouse as the value of the money you will be receiving in terms of pension will get reduced. In that case, you can give your spouse your house or any other asset and you get to keep the entire pension. For that to happen, you need to sign certain papers so that you cannot change the agreement without noticing the other.
Deferred Pension Sharing
This can be really complicated and can cost you a considerable amount of legal fees. In a situation where one partner is already receiving the pension and the other is too young to receive a pension or yet to retire, both the partners need to come to an agreement that pension will be divided in near future.
Deferred Lump Sum
If the owner of the pension is yet to retire then both partners may agree to wait until the pension scheme holder retires and instead of transferring the pension the ex-spouse may get a lump sum amount. This step is taken especially by those who d not have a pension scheme or in need of immediate hard cash.
Pension Attachment Order
The pension of your partner starts getting paid; you also receive a part of it. You might get a lump sum in cash or monthly payments on your pension account. In this case, you will not receive the money until your ex-spouse retires.
Why UK Family Mediation Service ?
Getting a divorce or separation from your partner whether you are married or in a civil relationship is tough. It not only affects you but also has a lasting impact on your family members. If you have children from your marriage then the one who gets affected adversely is your children. At this time, you need someone from outside to take control of the situation. We, at UK Family Mediation Service, provide trusted mediators who have years of experience behind their back about dealing with such situations. Our mediators know how sensitive these situations are and so they act according to the need of the hour.
Taking Care of Your Family
We, at UK Family Mediation Service, know what goes on with your family members when you are getting separated. So, our mediators will talk to your family members and look to cheer them up and provide them with the solutions by which they will feel a lot better.
Talking to Your Children
During the days of your divorce, your children get affected adversely. You need to understand that it is absolutely uncalled for. They tend to get into a traumatic situation with the shock of their parents getting separated. They seem to develop a grudge against their parents which hinder their proper upbringing. The mediators of UK Family Mediation Service will talk to your children personally and in presence of their parents so that they do not develop any grudges for their parents. This will ensure proper upbringing of your children as they will accept the situation practically.
We Provide Financial Advisors as well
As stated earlier, divorce also has a financial angle. One of the most important parts of the whole divorce scenario is the pension division. We, at UK Family Mediation Service, will provide you with a financial advisor who will take care of the whole situation and give you proper financial guidance regarding pension division and make the whole proceedings much smoother.
So, if you are getting separated and need someone to take control of the situation then you must call UK Family Mediation Service as soon as possible because we make sure that the process is smoother and in the end, everyone has a smile on their faces.