It is a sad fact of modern life that one in three marriages now ends in divorce. Even divorce amongst older couples in on the rise, but in this case, the financial impact can actually be even greater than it is for perhaps younger, less established couples.
In the event of a divorce, therefore, it is as important to consider the fair split of pension provision as it is the division of any other assets. If one spouse has no pension savings because they have stayed off work to support either house or family, while the other has worked and built a substantial fund, this should be taken into account when determining the settlement.
In reality, of course, you may not actually split the pension fund itself but instead, offset your rights to it against the value of something else. Perhaps some investments, business assets or even the marital home. Particularly where young children are involved, for example, the marital home may be a precious asset which will reduce upheaval in the short term. However, the benefits of this need to be weighted against those more formally related to retirement.
If you ever find yourself in such a position, it is vital to take both legal and financial advice before making any decisions.
Whatever your personal circumstances, it is worth talking to your financial adviser up front, to ensure that, whatever the future might bring, you are well prepared.
If you complete the form opposite, we will ensure a qualified financial adviser who is based in your area calls you for an informal chat about your specific circumstances.
FREE PENSION REVIEW