Reader question:
My husband and I have recently separated, I will be 66 in August and don't reach state pension until May. He is 63 in March.
I have very little savings at present, though we have equity in our home. He tells me I am not entitled to any of his private pension which is in the region of over 200k. He tells me no court in the land would allow that to happen!!! I have cashed in mine which was only 24k to pay the o/s mortgage. He is still employed earning around £3000 per month. I took early retirement from NHS in 2011 at his request to be 'a lady of leisure' and now find I am short of
full pension as I haven't contributed for past few years.
It is a 2nd marriage for both of us, we have been together since 2008, though he has had his pension since 1970s and had not contributed to it during our marriage. Would you be able to advise me if I would be entitled to a percentage of his pension if we divorce?
Answer:
Thanks for your question - it’s a good one!
Yes you should have access to some of your ex-husband’s pension. I have asked some specialists about this and they have given this piece of advice:
"When looking at your financial assets during a divorce, all assets need to be declared to the court. This includes any Defined Contribution pensions such as your husband’s pension as well as any Defined Benefit pensions such as your NHS pension. This means that you are entitled to some of your husband’s pension, but it also means that your husband is entitled to some of your NHS pension. The only pensions that cannot be shared are the new State Pension benefits
which replaced the old basic State Pensions. (Please note that there are separate rules for pre-April 2016 Additional State Pensions)
"The financial settlement may not include specific pension assets from either of you, but they will be considered, and an alternative monetary amount may be distributed from your other assets such as equity from your home.
"Due to the very complicated ways that pension benefits are calculated for a divorce settlement, I strongly recommend that you seek advice before finalising your divorce. The Pensions Advisory Service has a free service allowing you to review your options and they will explain the areas you need to consider and the specific questions you need to ask. It is important to ensure that the financial settlement is correct before your divorce is finalised as once the order
is issued by the Court, it is very difficult (and costly) to amend."
Victoria Rutland, Chartered Financial Planner EQ Investors
So do get some advice on this. Although he has access to your pension assets, it sounds like his are far greater so you should be the winner there. I hope so anyway!
All the best, Jasmine
Do you have a money-related question? Email [email protected] and we'll do our best to find you the answer.
