Financial Orders | Family Law.
What happens to money, property and debt with divorce, partnership and relationships splits?..link
Pension Earmarking.
Warning of the impact of pension reforms on divorces.
The government may have inadvertently opened up a loophole that can have a major impact in divorce cases.
In the past it has been commonplace for a pension earmarking order to be placed upon a spouses pension during divorce proceedings, this is where a pension, in the form of lump sum and/or income, is paid to a former partner. This has now been superseded by pension sharing, a much better arrangement, and the majority of pension orders are now concluded under pension sharing, it's with pension earmarking that a problem can arise.
If, for example, upon divorce an agreement is made where by the former partner was entitled to receive a percentage of income from the pension, with the new reforms the pension may not deliver an income as it can all cashed as a lump sum.
I would recommend that if you have had pension entitlement awarded to you via a pension earmarking arrangement or you are in any doubt you should check with a family law solicitor.
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