Posted by Patrick Hart, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Pension sharing upon a divorce
A new study has revealed that a significant number of women do not consider that pensions may be of relevance of pensions upon divorce and according to new research from Scottish Widows, women may put themselves at risk of serious financial hardship later in life. It is for this reason that appropriate legal advice really should be sought on such issues.
The research found that women often tend to receive lower salaries than men and so they are paying less into a pension after they have paid into household spending.
The banking group estimated that on average women managed to put £206 a month into their pension, while men saved an average of £298.
Over a long period of time this means there is a vast difference between men and women’s pension pots, meaning women are more likely to rely on their partner’s pension for a large portion of their income in retirement.
In fact, the research showed that around a fifth of women in their 50s and 60s said they would need to rely on their spouse’s pension during retirement.
With life expectancy continuing to increase, and the age at which people are divorcing also rising, there is a greater chance of women falling into financial difficulty following a split if they do not seek proper legal advice on this.
Matrimonial law takes pensions into account and actuaries are frequently asked to provide valuations for pensions to be taken into account by lawyers when discussing the division of assets upon a divorce.
For those considering divorce it is often advised that they get an updated pension valuation to consider whether a pension sharing order is appropriate in the case.
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