10 news/legal expert All my worldly goods I thee endow
... including half my pension! The basic state pension has had a starring role in the headlines recently, says Sian Davies of Glanvilles. We just need look at the published White Paper on the proposed State Single Tier Pension and David Cameron’s ’triple lock’ promise
It is fair to say that our pension is an asset we would very much like to see grow ... and keep. Pensions are an asset that are not tangible and there is often confusion as to how a pension is dealt with on divorce. These are various options available when considering pensions in light of divorce.
Is there an automatic entitlement?
By virtue of the marriage, a spouse can claim on the pension of their husband/wife/civil partner on divorce. Various things will be taken into account, such as the size of the pension, the length of the marriage and whether any of the pensions were acquired prior to the marriage.
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So how do you divide a pension on divorce then?
The three main ways in which pensions are dealt with on divorce are:
Offsetting This is where both parties retain their respective pensions. Where there is a disparity between the values of those pensions, other capital assets within the matrimonial ’pot’ may be given to the party with the smaller (or no) pension to offset the difference. Essentially other liquid assets are used as compensation.
Pension sharing Here, there will be a physical split of the pension. Once the parties have decided how much pension
they should each get, the pension member will have a ’pension debit’ and the receiving party will have a ’pension credit’. Following a pension share, there will be two distinct pension arrangements. Pension sharing and pension offsetting can often be used together in one financial settlement. It may be the parties agree to a small pension share to the receiving party but with a slightly higher capital split in their favour.
Pension attachment (earmarking) Pension attachment leaves the pension with the original member but the benefits will be diverted on payment. Again, once it is agreed how much each party should receive, the monthly payments will be distributed
between the parties in accordance with what was agreed. There is no pension credit or debit in this case and the pension will cease on the death of the member.
Can I protect my pension from my spouse? No. A pension is considered just the same as all other matrimonial assets. The basic state pension cannot be subject to sharing, attachment or offsetting on the breakdown of the marriage, however, occupational, personal pension arrangements and the additional state pension (formerly SERPS) can be.
It is always advisable to get specialist advice when considering a pension share or pension attachment due to their complex nature. It is essential that the effects of any such arrangement is fully understood.
Details: Sian Davies 023-9249-2300
sian.davies@glanvilles.co.uk www.glanvilles.co.uk
Region is UK no. 1 for deals
The South East has topped the charts for the value of business deals being done, new research shows.
According to Experian Corpfin’s latest report, £105,445 million worth of deals took place in the region in 2013, the highest value in the UK by far. The closest competitor was greater London, where £79,078m worth of deals was done.
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It’s positive news for the South East’s economy and yet another sign of the continuing economic recovery, according to financial experts at Grant Thornton’s Southampton office.
Partner Norman Armstrong said: “The increase in deal volumes we’re experiencing across most of our sectors is further evidence that the nascent recovery in the UK is more broad-based than previously thought. Mid-market companies are continuing to drive this growth and remain attractive targets for mergers and acquisitions – especially for those companies looking for a safe and accessible entry point to Europe.“
The research also revealed Grant Thornton as the number one financial adviser to UK companies by deal volume for the third year in a row. The firm advised on 131 deals in 2013 and outperformed the market – recording an 8% increase on 2012 compared to the 2.9% uptick in total volume of industry deals last year.
Nigel Le Bas, associate director in Southampton, added: “It’s fantastic we have retained our position as the number one financial adviser to UK companies for the third consecutive year.“
The fact that the South East has had the highest value of deals comes not long after it was revealed that the region is one of the most positive in the UK when it comes to business optimism.
The latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) found that business confidence in the region has been on an upward trend over the past year and now stands at +35.9, well above the UK national average of +31.7.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2014
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