03 February 2015
How a prenuptial agreement could help your pension
It’s quite common for pensions to be overlooked and, in the context of a marriage or civil partnership break up, a pension can be an under-estimated financial asset. As such, it’s important to consider your pension when drawing up a pre-nuptial or post nuptial agreement.
It is sad to say that divorce is so commonplace and meeting with a family lawyer to discuss a pre or post nuptial agreement is necessary in consideration of protecting your financial assets.
The Telegraph has reported that an unintended outcome of the April 2015 pension reforms could be for those having quietly considered divorce in the past to take the opportunity of a fresh start with this new access to cash. Official statistics revealing an increase in retirement-aged people seeking divorces suggest changing social attitudes, the prospect of longer retirement and people increasingly living longer as factors for middle class housewives filing for divorce.
The UK Government’s pension reforms offer a more affordable and easier way of accessing pensions, as opposed to the series of fixed sums of an annuity. From April 2015 people over the age of 55 will have the option of taking a number of smaller lump sums instead of just one. 25% of each sum will be tax-free. The reform is potentially beneficial to people that have saved a large amount of money in their pension, able to take out a larger tax-free lump sum.
Pre-nuptial and post-nuptial agreements allow both parties to know exactly where they stand in the unforeseen event of a relationship break up or divorce.
For an initial consultation with a family lawyer contact us here.