Divorcees: don’t forget your pensions!

Research released by the National Office of Statistics has uncovered that only 6% of divorcing couples consider pensions within their settlement, emphasising the frightening financial state many people find themselves post-divorce.

The Prudential agree, adding that 40 per cent of those planning to retire in 2013 have been divorced. In general they are less likely to have private pensions, more likely to retire with debts, and less likely to believe they are financially well prepared for retirement.

Top South West divorce lawyer, Liz Allen, explains: “There are so many misunderstandings regarding the significance of pensions, with the majority of divorcees missing out on valuable assets to make their future secure and comfortable.

"Unfortunately, this seems to have been exacerbated by the increase in low cost or do-it-yourself divorces and, with divorces amongst the over 50s on the increase, the importance of a potentially healthy pension pot to include within negotiations cannot be over-emphasised.

“Individuals are often missing out on large sums on divorce, particularly if their spouse has an armed forces or NHS pension,” Liz continues.

“It is a sad fact that pensions are so frequently ignored by individuals on divorce, with people thinking they are not important as an asset probably because a pension cannot necessarily be accessed immediately. It is vital that divorcing couples take action to ensure their long-term financial security is provided for.”

All this research underlines how crucial it is to take the best possible legal and financial advice at the point of divorce. Your lawyer can work closely with a pensions expert to ensure that financial security is achieved through a pensions sharing order as part of an overall settlement.

Liz Allen is consistently ranked highly in the UK’s top two independent legal guides, Chambers and Legal 500, and is the only family lawyer in Devon and Cornwall to appear in the Citywealth Leaders List, an independent list of some of the best advisors in private wealth management in the world, for the fifth year running.

Stephens Scown has over 40 partners and 230 staff across its offices in Exeter, Truro and St Austell. For more information visit www.stephens-scown.co.uk