When a couple who are retired or approaching retirement get divorced, one of the major issues to be settled is the division of pension entitlements.
In this situation, the first step is to obtain a valuation of the pension rights. Where large sums are involved it is sensible to obtain professional advice. Pension entitlements can be dealt with either by a sharing of the pension when it vests (this is called ‘attachment’) or as a value to be taken into account when a division of the assets at current values is under consideration.
When an attachment of a pension takes place, the attachment will cease if the person benefiting from it remarries. The attachment will be in the form of an entitlement to an agreed percentage of the fund as calculated on the relevant valuation date, not as a percentage of a particular figure.
The alternative is for a part of the fund to be transferred to a pension provider to administer for the spouse receiving it.
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