When pensions are brought into divorce proceedings and financial settlements, things can become even more complex and stressful than they already are. People may not be aware that pensions can actually become part of a financial divorce settlement.
The already difficult situation of going through a divorce causes many people to overlook this topic. However, it doesn’t have to be a painful process. Pension actuaries can help you understand what you could be entitled to when it comes to pensions in divorce settlements.
In this article, we’re going to be looking at everything a pension actuary can do for you and their role in financial settlements.
What is pension sharing?
Before we talk about pension actuaries, let’s first take a closer look at pension sharing, which is what these actuaries specialise in.
In the divorce process, pension sharing relates to pension assets split between the two parties in question. Pension sharing can be significant, as pensions are often a prominent asset within a marriage. It also ensures that both parties receive a fair amount from the shared pension pot when they divorce.
What are pension actuaries?
Pension actuaries are specialists in all things related to your pension. From managing retirement benefits to organising pension plan finances, pension actuaries are multi skilled professionals who know their stuff. Their main goal is to ensure that both parties receive the finances they are entitled to from their pensions in a fair and just manner.
When working in the field of divorce, pension actuaries focus on the division of retirement benefits and pension plans between you and your ex-spouse. As mentioned, pensions and divorce settlements are a complex topic. Pension actuaries offer valuations that take into account all the necessary factors, such as pension conditions or future payouts. These professionals are essential when it comes to financial settlements that include pensions thanks to their specialised knowledge.
What can pension actuaries help with in divorce?
Pension actuaries will help you with anything related to you and your ex’s pensions during the financial settlement part of divorce proceedings. Here are just a few of the topics that a pension actuary will cover with you:
- Pension plan division: Different pension plans have different benefits and regulations. A pension actuary can help you navigate this confusion, as they can break down the information with their valuations and assessments.
- Valuations: While we are on the topic of valuations, this is something that pension actuaries are particularly helpful with. They will calculate the present value of future pension benefits so that an equitable division can happen.
- Tax assistance: Pension income tends to be taxable, which can add another layer of confusion to the process. Pension actuaries can help with any necessary assessments regarding taxes and walk you through the rules and regulations.
- Legal procedures: Pension actuaries can also aid with legal proceedings, such as dealing with court orders relating to pension splits in divorce.
- Managing risks: Thanks to their expertise on the subject, pension actuaries can also manage risks. Actuaries are trained to look for changes in certain areas that could affect a pension plan, such as changes in the workplace or economic factors. In addition to managing financial risks, pension actuaries assess funding levels to ensure your pension can meet future payouts.
Expert advice from Osbourne Pinner Solicitors
If you are looking to find out more about pensions within a financial settlement, the team at Osbourne Pinner are happy to help you with any questions or concerns.
Our expert divorce solicitors can advise you on a range of topics related to family and divorce law and offer a free consultation. Simply fill in our form below, call 0203 983 5080 or email us at [email protected].
