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8 May 2014 0 Comments
Posted in Family, Opinion

State Pension Reforms to Impact on Divorce

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From April 2016 a number of proposed changes to the state pension are set to have a significant impact on the financial matters of those couples going through a divorce or dissolution of a civil partnership.

Under the current system, during divorce proceedings, a court has the discretion to consider a person’s additional state pension as a financial asset, which can be shared in a financial settlement through the making of a pension sharing order with a former spouse.

However, under the reforms which will take effect in April 2016, the existing system of basic state pension, additional state pension and graduated pension is set to be replaced with a new single tier state pension which is likely to be £144 per week. As the law stands, a divorcing spouse is able to replace their own National Insurance records with those of their former spouse in the event that their former spouse’s contributions are greater than their own. The changes will make this process unavailable for those attaining pension age after April 2016.

In order to qualify for the full pension amount after the reforms come into effect, the person making the application will need to have 35 qualifying years or credits.

The state pension reforms coming into effect from April 2016 will have an impact on financial matters within divorce cases. Our experienced family law solicitors are able to advise on the effect of these changes in the event of a divorce. At Royds, our family solicitors are able to negotiate or litigate in any type of ancillary relief matter, and we are committed to ensuring the financial position of our clients is fully protected – whether by a fair and amicable settlement out of court, or via court proceedings.

To find out what the changes to the state pension may mean for your finances, or to discuss ancillary relief matters, contact Patrick Hart in our Family Law team today.

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