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Divorcing Couples Fail to Recognise Value of Pensions

Gresham Wealth

Research by Legal & General has highlighted that pensions continue to remain an under-valued asset in divorces, with 31% of women in their 60s saying they would waive their rights to access their partner’s pension. To further highlight the issue, when questioned, 50% of people said they would split their home in divorce, but only 12% said they would consider pensions.

The issue is underpinned by the overall lack of advice received by those going through divorce and according to Legal & General, only 3% of people sought financial advice during the divorce process. 

This is especially concerning following the introduction of ‘no-fault’ divorce in April this year, and statistics from the Law Society show 33,234 divorce applications were made from April to June – a record high.

We have written before about the growing need to access financial advice when getting divorced – especially for those in later life. The older you are when you divorce the more complex your financial situation is likely to be. This is due to the accumulation of individual and shared assets over a longer period, along with having had more working years to contribute to pension pots.

Despite the fact they are often overlooked, pensions are often one of the most valuable assets after the family home. However, due to the complex nature of pension contracts, and fluctuations in their value, getting to the bottom of pension benefits is not a straightforward process. As financial advisers, we specialise in pensions and divorce, and we will work alongside solicitors to help clients achieve a fair settlement. This is often done together with advice relating to a clients’ wider financial picture – helping to ensure that they emerge from divorce with a better understanding of their financial position and a clear plan moving forward.

For more information or to speak to one of our financial advisers, please get in touch.

Source of information: Financial Vulnerability Taskforce  Report

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