You were married - the expectation was that you were planning for your joint retirement.I'm just struggling to understand how the spouse who plans prudently for their retirement can be penalised in favour of the one that does not.
Maybe their spouse was at home rearing the six kids while they earned big money to stuff the pension fund.Just wondering if anyone can explain to me why a pension, held by and wholly paid for by one spouse becomes an asset of the marriage on divorce which the other party can have a claim on?
Assume husband has a pension. Wife does not. They get divorced. Pension adjustment orders are in place. Husband dies. Neither party has remarried.Just wondering if anyone can explain to me why a pension, held by and wholly paid for by one spouse becomes an asset of the marriage on divorce which the other party can have a claim on?
Thanks to those of you who took the time to give informed answers to my question.
In the case where one spouse worked in the home rearing children etc I do of course see it as just and fair that the pension is part of the “pot”.
In the case where both worked and one just didn’t bother with a pension plan I don’t see it the same way at all and wanted to better understand the reasoning behind it is all.
Not that pensions should be out of scope but considered on a case by case basis I would suggest.
Again thanks for the informed answers
That sounds like the sort of relationship that ends up in divorce... and yes, I am speaking from experience.Thanks to those of you who took the time to give informed answers to my question.
In the case where one spouse worked in the home rearing children etc I do of course see it as just and fair that the pension is part of the “pot”.
In the case where both worked and one just didn’t bother with a pension plan I don’t see it the same way at all and wanted to better understand the reasoning behind it is all.
Not that pensions should be out of scope but considered on a case by case basis I would suggest.
Again thanks for the informed answers
Yes to Q1Am I right in saying that both spouses pensions are taken into consideration?
So if spouse A has a private sector defined contribution "pension pot" at age 50 of, say, 600k.
And spouse B has a public sector defined benefit pension of say 40k per annum.
Is this split 50:50? So Spouse A woyld get 30k per annum plus 300k pot, if you follow me?
@ArthurMcB, The unfairness of the current way it works is that future value is not really taken into account. If one party has a pension of €600k but will be unable to contribute to it further after the divorce and the other has a new job with a fantastic defined benefit pension the €600k is split and the DB pension is assessed at it's current nominal value.Yes to Q1
Can't really answer on Q2 - it depends on the totality of assets, nothing is assessed in isolation.
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