Pension Sharing Order

fezzik

Hello all,

I am going through a separation and divorce and have a very specific question with regard to Pension Sharing Orders. Most of the rest of the divorce detail is very straightforward, but I will set out the facts and then ask some questions, which I trust somebody may be able to answer through experience or expertise.

I have two pensions, and their cash equivalent value together is no more than £15,000 at the present time.
I have agreed with my (soon to be) ex-wife that I am happy to share these 50/50.
All other financial matters we have reached agreement about and don't need financial orders for.

here are the questions:

I understand that the pensions can only be shared following a court order - can this order just be requested by us in a covering letter as an extra to the divorce petition?
If so, what details do we need to provide for the court to make the order? (i'm guessing a joint signed letter with pension details and confirm that 50/50 is what we agree)
If that is not possible, we presumably have to instruct a solicitor to prepare paperwork for the order? Would this include Form E disclosure forms? Even though we are in complete agreement?
And the application for the court order (Financial Order) would cost £255? would that be per pension? or would £255 cover both pensions?
Would the court have any issue with us deciding 50/50 without more investigation?
Is it also right that pension firms charge for the privilige of doing this? And that would be presumably deducted from the value of the pension?

Many thanks in advance, sorry for the waffle!:j

fezzik

rpc

fezzik wrote: »

Is it also right that pension firms charge for the privilige of doing this?

You are asking them to do something that has a reasonable bit of admin attached and isn't part of the normal administration of a pension. So yes, it is fair to pay. If you don't, everyone else that holds their pension with them would be.

And that would be presumably deducted from the value of the pension?

You could probably send a cheque, but if it is paid out of the pension then you get tax relief on the fee :-)

Tiddlywinks

There is a Pensions Board here:

http://forums.moneysavingexpert.com/forumdisplay.php?f=19

fezzik

Thank you both for your replies. I'll go look at the pensions board too.

TBagpuss

fezzik wrote: »

Hello all,

I am going through a separation and divorce and have a very specific question with regard to Pension Sharing Orders. Most of the rest of the divorce detail is very straightforward, but I will set out the facts and then ask some questions, which I trust somebody may be able to answer through experience or expertise.

I have two pensions, and their cash equivalent value together is no more than £15,000 at the present time.
I have agreed with my (soon to be) ex-wife that I am happy to share these 50/50.
All other financial matters we have reached agreement about and don't need financial orders for.

here are the questions:

I understand that the pensions can only be shared following a court order - can this order just be requested by us in a covering letter as an extra to the divorce petition?
If so, what details do we need to provide for the court to make the order? (i'm guessing a joint signed letter with pension details and confirm that 50/50 is what we agree)

No, it can't be by letter. You have to complete the pension sharing annex (Form P1). This is then attached to your consent order.

If that is not possible, we presumably have to instruct a solicitor to prepare paperwork for the order? Would this include Form E disclosure forms? Even though we are in complete agreement?

No, if you are in agreement you submit a draft order plus Statement of Information for a Consent Order (Form D81) You don;t have to do Form Es. It would however be sensible to get a solicitor to draw it up for you, as you don;t seem to know much about what you are doing.
Your local court **may** have a pro-forma you can request but it would be sensible to get it done professionally in any event

And the application for the court order (Financial Order) would cost £255? would that be per pension? or would £255 cover both pensions?

No, if it is an agreed order the fee is £50

Would the court have any issue with us deciding 50/50 without more investigation?

Unlikely. On the D81 form there is an 'additional info' section where you can explain the reasoning behind the split if you are worried.

Is it also right that pension firms charge for the privilige of doing this? And that would be presumably deducted from the value of the pension?

Yes. Costs vary. Some are free - if there is a private pension and the transfer is to the same company some may not charge.
As you have two pensions it is likely to be worth considering spliting just one so you only pay one fee - e.g. is you have one worth £10K and one worth £5k, split them with your ex having 75% of the £10 one, not 50% of each. Each company shoulsd be able to tell you what they will charge.
Some comapnies are willing to tsake the fees out of the pension and some require them paid upfront. You set out on the P1 form which of you will pay or how the fees will be split.
As the pensions are small, you could also agree that you keep the pensions and that your ex had a small lump sum in lieu of a pension share

Many thanks in advance, sorry for the waffle!:j

fezzik