Why wait for your decree absolute if there is a pension sharing order?

Whilst most people are keen to seek the final decree in their divorce after what can be a long process, it is important to take legal advice and check your timing. If not, you risk financial detriment, despite all the effort and time which goes into your consent order. There are various factors which can impact the timing, so it is crucial to consult a family law specialist throughout the process.

For example, pensions can be tricky if something unexpected happens to one party.  A pension sharing order only comes into effect on the later of the granting of the decree absolute or 28 days from the date of the pension sharing order.  If the final decree / decree absolute is granted and the other party dies within 28 days of the order, there is a risk that the pension sharing order will fail.  The reason being that the fund terminates on the policy holders death and therefore before the pension sharing order came into effect.

As the marriage is terminated by the final decree, the surviving party also loses their entitlement to any spousal benefits which may have otherwise existed under the pension, for example, a widower’s pension. The risk being that you can be left with no provision whatsoever.  Whilst many parties perceive the risk as slim, there is often no need to take the risk at all and legal advice should be taken.

Harrowells' Family Law team are very experienced in advising on divorce settlements involving pension assets.