DIVORCEES are missing out on tens of thousands of pounds in retirement if they ignore their ex’s pension. Many people underestimate just how significant a pension can be in a divorce settlement, often assuming it belongs only to their ex, says Sarah Green, a family lawyer at Michelmores. Advertisement 4 Divorcees are missing out on tens of thousands of pounds in retirement if they ignore their ex’s pension.
Credit: Getty She adds: “But pensions can be one of the most valuable assets, sometimes more valuable than the family home.” When you divorce, private pensions are part of the financial settlement. Most people have defined contribution pensions.
Their value is based on how much you pay in and on the investment growth. Advertisement READ MORE ON PENSIONS STATE OF PAY State pension error update after 370,000 sent letters - are you owed £7,859? THAT'S POTTY Pension mistakes that could cost you thousands in retirement - how to fix them A solicitor can help you get a report to get an idea of how much the pension will be worth when you retire. Lara Davies, head of legal at OLS Solicitors, says: “It’s important to get a clear picture of all pension entitlements.
4 Some may prioritise keeping the family home, but this could be at the expense of a fair pension share Credit: Getty “This can be done by requesting a so-called cash equivalent transfer value for each pension.” Advertisement There are three main options for dealing with pensions in divorce: Splitting, of.
