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Pensions on divorce

Pensions can be a complex and technical area where care needs to be taken by the parties and their lawyers alike. There is power for the courts to order the sharing of pensions. That is the division of part of or all of the pension belonging to one party and its transfer to the other party. This ‘pension credit’ will then need to be invested in a pension in the name of the receiving party. In those circumstances the party does not receive cash, but a pension which they can access on their normal retirement date. 

The Court also has the power to earmark for the benefit of one party, the income or part of the income due to the other from a pension pot. Pensions can be divided, be they in payment or otherwise. They are, for divorce purposes, valued in accordance with their cash equivalent transfer value which is sometimes considered an inappropriate method of valuation for some pensions. Specialist actuarial advice can be needed to assist in what can, in some cases, be a difficult issue.  

Please contact our Matrimonial team on:

Tel: 01825 762281

email: matrimonial@dawson-hart.co.uk 

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People

Mahie Abey - Partner and Head of the Matrimonial Department
Abey qualified as barrister in 1993  having studied law at Cambridge and practised in family
 
Kerry Mersh - Senior Matrimonial Executive - Matrimonial Department
Kerry has worked in the legal profession for over 25 years. She joined Dawson Hart in 1998. She
 
Kirsty Edwards - Legal Executive - Matrimonial Department
Kirsty has worked at Dawson Hart since 2002 and was admitted as a Fellow of the Institute
 

News

7 May 2008
Cohabiting partners still do not have similar rights to married couples...
 
19 March 2008

The much-publicised divorce has led to a settlement in favour of Ms Mills of £24.3m...

Testimonials

“We were given a breakdown of the likely costs at the outset and these proved to be completely accurate. I was left in no doubt as to the time process which was all clearly explained at our initial meeting. There were no surprises throughout the process which made it much easier for me to understand”

April 2008

Glossary

ADR:

An alternative to litigation to resolving disputes

Acknowledgement of Service Form:

Document completed by the Respondent to a divorce indicating whether the divorce is defended or not.

Affidavit in support of Petition:

Document filed by the Petitioner to seek Decree Nisi

Ancillary Relief:

The financial process that is linked to divorce

C1:

Form used to commence Children Act proceedings

C2:

Form used to make an application in already existing Children Act proceedings.

CAFCASS:

Child and Family Court Advisory Service.  A Government agency which assists the parties and Court in disputes involving the children.

CAFCASS Report:

Report prepared by a CAFCASS Officer (by order of the Court) in some cases where parents are in dispute about children issues.

Children Act 1989:

Main piece of legislation dealing with children issues.

Chronology (Finances):

Document filed 14 days before the FDA setting out the history of the relationship and proceedings (in brief).

Civil Partnership:

A legal status available to same sex couples.

Cohabitation Agreement:

Agreement entered into before parties cohabit setting out how assets should be divided on separation.

Collaborative Law:

An alternative system of resolving family issues where the parties agree not to go to Court and where negotiation takes place in joint meetings between the parties and their lawyers.

Common Law Husband/Wife:

A legal fallacy.  The concept does not exist and provides no protection to cohabitees.

Conciliation Appointment:

A Court appointment within Children Act proceedings at which a CAFCASS Officer is present.

Consent Order:

Court Order enshrining agreement reached between the parties

Contact Order:

This is an Order which governs the amount of time a child who does not live with a particular parent sees that parent.

Costs Order:

Order made that one side pays the other side’s costs, or part of them.

CSA:

Child Support Agency. Government agency set up to deal with child maintenance payments.

Decree Absolute:

Final decree of divorce

Directions:

Orders made by the Court to provide guidance to the parties on the conduct of the case.

Directions for Trial (Special Procedure):

Request made in writing for the Court to consider whether Decree Nisi can be made in an undefended divorce.

Divorce Petition:

Document filed at Court to start the divorce process

FDA:

First hearing after issue of financial proceedings, usually used to obtain Directions from the Court.

FDR:

Second hearing in financial proceedings. This is Without Prejudice and the Judge will give a view of the possible outcome.

Final Hearing:

The hearing at which the Court will impose a settlement on the parties.

Form A:

Form filed to start financial proceedings

Form E:

A financial affidavit which is used to provide disclosure in the Court process (and in voluntary disclosure)

Form G:

Form filed 14 days before the FDA setting out whether the parties can use the FDA as an FDR.

Form H:

Estimate of costs form in respect of finance proceedings.

Form H1:

Estimate of costs form produced before the final hearing on financial proceedings.

Freezing Injunction:

A Court order freezing the assets of a party to prevent those assets being dissipated or moved abroad.

Maintenance Order (or Periodical Payments):

An order for the payment of money on a regular basis between one party and another for the benefit of the receiving party or the children.

Matrimonial Causes Act 1973:

Main piece of legislation dealing with divorce and financial issues on divorce.

Mediation:

An alternative method of resolving disputes where the parties reach their own agreement with the guidance of a trained mediator.

Open Proposals:

Proposals made which can be considered by the Court at trial.

Parental Responsibility:

A legal concept governing the rights, duties and obligations a parent has in respect of a child.

Pension Sharing Order:

Order dividing a pension either in full or in part.

Petitioner:

Person who starts the divorce

Pre-Nuptial Agreement:

An agreement entered into before marriage dealing with the way finances should be dealt with on separation.

Prohibited Steps Order:

This Order prevents parents taking a step, which they otherwise could take as a child’s parent. For example it can be used to prevent a parent taking a child abroad.

Property Adjustment Order:

Order for transfer of property between one party and another.

Questionnaire (Finances):

Document filed 14 days before the FDA seeking further information from the other party based on the Statement of Issues and omissions in disclosure to date.

Residence Order:

This Order governs with which parent a child will live.

Resolution:

Formerly known as the Solicitors Family Law Association. This is a professional organisation to which some 5,000 family lawyers belong.  It promotes a non confrontational approach to family law.

Respondent:

Person on receiving end of the divorce petition or any other Court process within family proceedings.

S41 Certificate:

Certificate supplied by the Court prior to Decree Nisi certifying that the Court is happy that the parties have considered the children on divorce.(This is a formal part of the divorce process and not the same as the Court making an order regarding the residence or otherwise of the children when a dispute occurs.)

Separation Agreement:

Agreement entered into on separation setting out how assets (and other matters) are to be dealt with.

Specific Issue Order:

These Orders deal with particular issues in a child’s life on which parents cannot agree. For example which school a child will attend.

Statement of Arrangements for Children:

Form filed at Court with the Divorce Petition to inform the Court that the parties are thinking about the children on divorce.

Statement of Issues (Finances):

Document filed 14 days before the FDA setting out the issues between the parties.

Statement with regard to reconciliation:

Form filed with divorce Petition indicating whether the solicitor has given advice on reconciliation.

Without Prejudice:

Material which is Without Prejudice cannot be referred to in open proceedings.

Without Prejudice Proposals:

Proposals which can be considered by the parties and the Court at Without Prejudice Hearings eg FDR but not at trial.

Witness Statement:

Statement of evidence filed by a party or a witness within proceedings.

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