When couples divorce, splitting what they own can be tricky and emotional. Everyone focuses on the house, but pensions are a big deal too. Some people think pensions only belong to the person who earned them, but in the UK, that’s not true. Pensions are seen as a family asset, like the house, and can be split in a divorce. A trained mediator can help facilitate these emotional and complicated discussions to ensure a fair outcome for everyone.
It’s important to know that pensions are included in what’s called the ‘marital pot’ – everything built up during the marriage. This is especially important for someone who might have stayed home to look after kids and missed out on building their own pension. Mediation can be a helpful tool to help have these discussions
So, how are pensions dealt with in divorce? Here are a few ways:
- Pension Sharing: The pension pot is split straight away, creating separate pensions for each person. This helps everyone move on.
- Pension Offsetting: Instead of splitting the pension, its value is balanced against other things you own. For example, one person might get more of the house, and the other keeps their pension.
- Pension Attachment Order (Earmarking): A share of the pension is paid to the other person when they retire. This can be more complicated to set up.
Working out what to do with pensions can be tough. That’s where mediation can help. A neutral person (the mediator) helps both sides understand the options and what they mean. This helps couples make informed decisions about their money.
At Family & Finance Mediation 1st, we know divorce is difficult. We can help you understand all your assets, including pensions. Our mediators can guide you and help you reach a fair agreement. Get in touch to see how we can help you through this.
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Sorting things out with your ex can be tough, but you don’t have to do it alone. If you’re thinking about mediation or just want to know more about your options, we’re here to help. Get in touch by calling us at 0330 33 22 488 or emailing familyandfinancemediationfirst.co.uk
