Separated long term - worried about pension implications

Skint_Lynne

Hi,

I am asking this unusual question for a relative of mine, I do have a husband who is in the forces, but as we are happily married, I cannot help on my own.

This family member has been separated from his ex wife for around 13 years at least, but they have never divorced. she left him in a lot of debt and the last time he tried to divorce her, the solicitor said that she actually owed him money. She was after his pension etc. This was a very unhappy marriage, she ran up lots of debt etc and they were not suited to each other, so they were better off apart.

She is now with her 2nd or 3rd chap and my relative has been with someone for around 11 years. They are happily together and have a son. He is now worried that if anything happened to him, his ex will have claim on his cash, and get a widow's pension.

What I am asking is, does anyone know if she could claim money from his monthly pension and if he were to pass away, would she have claim on any of his assets? (The house belongs to his OH, she bought it before they met), just the car and any cash he has really. I think that too much time has passed, but I am unsure about if he died, she is technically his next of kin I would think.

I should mention that my relative would fall under English law, he lives in NI, and his ex is in Scotland. He is not in the forces anymore, but gets a monthly pension from them.

Any help would be appreciated.:)

zzzLazyDaisy

I can't answer for a forces pension, hopefully someone with more info will be along soon.

But I can tell you that many private pension schemes have a widows benefit that can only be paid to the widow - regardless of how long the couple have been separated.

Also, if they divorce, she will be entitled to a share of his pension pot under the pension splitting rules - since he is already drawing an income from his pension pot, this would have the effect of reducing his income.

I suggest the first people to speak to should be the pension scheme provider, to see if it is possible to elect his current partner as the beneficiary of the 'widows pension'.

Skint_Lynne

Thanks a lot for that advice,

I thought as much, he does not want to give her anything due to the level of debt he had to pay off, it was an eyewatering amount.

He also provided for his daughter, she was really well cared for, she is an adult now and he does not have to pay for her keep any more, but he contributed to her wedding etc.

zzzLazyDaisy

Sorry, I just realised that I didn't answer the question in full.

Re his cash/assets if he should pass away - I sincerely hope he has made a will, because under the intestacy rules she is still his wife and would certainly be entitled to a share of his estate - if he dies in NI, then that is the law that would apply.

So he should make a will and for good measure he should clearly state that he has considered his wife but has decided not to leave anything to her, as they have been separated for (x) years at the time of making the will, and she is not a dependent.

Also remember if he does get divorced this will invalidate the will, and he will need to make a new one (ditto if he subsequently re-marries, unless the new will is expressly stated to be in contemplation of marriage)

Alias_Omega

This is really a question for the pension society.


Though, personally i would see it as -

The number of years served towards the pension (a)
Then number of years they were "together" (b).

It then breaks down into -

(b) / (a) divided by 2 = Percentage of pension awarded.

This would be the percentage that i would offer of the pension each month, or translated into a lump sum which they could accept.

zzzLazyDaisy

In terms of the monthly pension payments, the ex-wife has no claim any way.

But if there is a divorce, then his pension scheme provider must give a valuation and then the solicitors jointly appoint an actuary to assess how much she is entitled to, taking into account any pension of her own (unless they can come to an amicable agreement). That amount is then transferred into a pension pot of her own, she doesn't actually get the cash. But this means that his pension pot is reduced and so he gets less pension. However it is always possible to agree to buy out her rights for a cash lump sum.

If they remain married, then whether or not she gets a widow's pension and/or a lump sum depends entirely on the rules of the pension scheme. As this is a forces pension, he will need to contact the provider to find out how things stand.

There is no point in guessing, or using 'common sense', because that rarely applies.