A pension can be one of the most valuable assets in the context of a Separation/Divorce.
The Court is obliged to take into account the value of pension benefits following the introduction of the The Family Law Act, 1995 and The Family Law (Divorce) Act 1996
The following are the main types of pension schemes:
An occupational pension scheme
Personal pension plans
Statutory schemes for public employees
Pension benefits come under two headings:
Retirement Benefits
The benefits payable to the member, or to others, either at the time of retirement of earlier withdrawal from service. The benefits include retirement pensions, retirement lump sums or gratuities or dependant’s pensions payable following the member’s death in retirement and periodic increases on all pensions whilst in payment.
Contingent Benefits
The benefits payable in the event of the death of the member during the period of employment to which the scheme relates. In a company pension scheme, contingent benefits are generally called “death-in-service” benefit and this includes lump sum benefits and pensions payable to dependants.
Pension Adjustment Orders
Pension Adjustment Orders can be made by the Court in relation to retirement benefits or contingent benefits or both.
A PAO in relation to retirement benefits may be made in favour of a dependent spouse or a person for the benefit of a dependent child.
A PAO in relation to contingent benefits may be made in favour of a dependent spouse or a person for the benefit of a dependent child.
In the case of either, the Order is served on the Trustees of the pension scheme so that they may make the necessary adjustments to the scheme as subsequently directed by any Order (should the Order be made).
In certain circumstances and most often by agreement between the parties, Nominal Pension Adjustment Orders can be made to ensure that neither party has any interest in the scheme of the other.
One of the first things we will ask you to do is to secure a benefits statement from your pension provider in order to ascertain the value of your pension.
A PAO can be varied in the future unless a specific Order was made at the time of making the PAO prohibiting the Court from varying that Order in the future.
Pensions are a complex area and legal advice is essential.
Please see the other links relating to our Family Law pages.
