What is the pension sharing order process?
If you’re currently going through a divorce or about to start proceedings, you are probably aware of the financial battles ahead. Your first port of call would probably to be to call a solicitor, but have you considered consulting with someone about your finances personally?
By speaking to a financial advisor, you could really learn a great deal about what to with your assets, how to manage your pension and what to do in the case of a pension sharing order.
A financial advisor will be able to assist and value your current pension, all whilst determining the best figures to finalise during your divorce.
Prior to your court order, you will want to have all the knowledge possible before any negotiations are underway. You should be aware of what you’re entitled to and how it will proceed going forward.
A financial advisor can assist you with valuing your pension, whether this is a personal, non-registered, state or occupational etc. This will help determine whether your pension is final salary or defined contribution etc. It will then be calculated on what percentage yourself and your party are both entitled to. It’s also worth checking the charge rates of information taken from your pension company.
Some information can be provided for free, but others may have charges. Your financial advisor can also assist in matters like this.
Once you have the relevant information, it should be discussed with the opposing party how you will be splitting the bill for these charges prior to them being made. Your application will then be processed via a trustee, who will report back the outcome 21 days after they are informed. An implementation can take between 2- 4 months. During this time, the court will assess your order, especially if you were unable to come to a finalised agreement. They will base their calculations on both parties’ current circumstances and previous marital circumstances.
A pension sharing order is not officially made until the decree nisi is granted from the courts. This is to provide evidence that the divorce proceedings are underway or completed. After the decree is granted, no variation in the financial settlement can be varied or changed. This is due on the basis of it being a legal document. The pension sharing order scheme began in December 2000 and is now a legal formal document containing the agreed financial settlement from your divorce. For whatever reason you wish to appeal or reverse your sharing order, always consult with your financial advisor and solicitor before doing so. It is always best to seek financial advice when considering a pension sharing order.
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