Whilst divorce rates have fallen over the last 25 years, the proportion of divorcees over age 60 has followed an upward trend. Within these older age groups it’s not unusual to find that the majority of the pension assets are held mainly by one party (usually the husband), and at the same time retirement planning is likely to be higher up in their financial priorities.
In July 2019 the Pension Advisory Group published “A Guide to the Treatment of Pensions on Divorce” with input from judges, solicitors, barristers and financial experts. It’s expected this guide will become the “go to” document for professionals working in this area, so throughout the presentation we explore the content to uncover best practice.
Consideration is given to the new term PODE (Pension on Divorce Expert), what they do, skills required to be a PODE and the role an adviser who is not a PODE can still play in the process. Given the Resolution body has previously estimated the Divorce & Separation market to be worth £500m p.a., it’s likely to be an area some advisers will wish to investigate further.
We identify the main options in financial remedies, offsetting, attachment & pension sharing, and common issues that arise when trying to value pension assets for these purposes.
Learning objectives:
By the end of this session you’ll be able to:
• Understand how pensions fit within the divorce process
• Explain the role of financial advisers and PODE’s in the divorce process.
• Understand the factors influencing the valuation of pension assets on divorce.
• An understanding of the options available for pensions in a divorce settlement, and their advantages and disadvantages.