Pension sharing orders are a type of financial order that can be made in the event of a divorce or dissolution of a civil partnership in England and Wales. The purpose of a pension sharing order is to divide the pension assets of one spouse or civil partner between the two parties in a fair and equitable manner.
Before a pension sharing order can be made, it is necessary to obtain a valuation of the pension assets in question. This is typically done by a pension actuary, who will calculate the value of the pension assets and determine how they can be divided between the two parties.
Once the valuation has been completed, the court will consider the pension sharing order and decide how the assets should be divided. This will typically be based on a number of factors, including the parties’ ages, the length of the marriage or civil partnership, and their respective contributions to the pension assets.
There are a number of practical steps that a client can take if they are considering a pension sharing order. Firstly, it is important to obtain legal advice from a solicitor who specialises in family law. They will be able to provide guidance on the process and the likely outcome of a pension sharing order.
It is also advisable to obtain a valuation of the pension assets as early as possible in the process. This will ensure that the parties have a clear understanding of the value of the assets and can negotiate a settlement that is fair and reasonable.
There are also a number of legal risks associated with pension sharing orders. For example, if the pension assets are not divided in an equitable manner, one party may be left with insufficient funds to support themselves in retirement. It is therefore important to ensure that the pension sharing order is fair and reasonable for both parties.
In conclusion, pension sharing orders can be a complex and legally challenging area. It is important to obtain legal advice from a specialist solicitor and to obtain a valuation of the pension assets as early as possible in the process. By taking these steps, clients can minimise the legal risks and ensure that the pension sharing order is fair and reasonable for both parties.
