Pension when separated

CathA

Hi lovely knowledgeable people. I'm asking the following on behalf of a friend.

My friends are still married but have lived separately for over 10 years, never divorced. They are both getting to the ages where they can access their pensions if they want to. First question is- if one or the other accesses their pensions ( mostly contributed to years ago), does the other one have any right to have any of the TFLS or income? We're talking small amounts here.
Secondly, if the pension company has offered a trivial commutation figure of approximately £15,000 and it's a defined benefit pension, does it require IFA advice/sign off, along with the hefty charges that goes with it?

Thank you all.

rpc

I don't think pensions can have an enforced split other than on divorce - there is not automatic right for one spouse to receive an income or lump sum from the other.

Trivial commutation doesn't require an IFA but does require various conditions to be met (it isn't about one pension pot in isolation) See http://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/the-right-choice-for-me/taking-a-small-pension-as-a-cash-lump-sum

CathA

Anyone got any further thoughts please? Thanks

comeandgo

Neither of them have any "right" over th others pension payouts. If they had divorced then there would be a financial agreement in place and at that time if need be the pensions would have been split.
My husbands pension provider did try and get him to see IFA but he just had to sign a paper saying he understood the implications of not seeing one.

Number75

The only way they can be forced to share is via Pension Sharing Order granted as part of the divorce.
The person making the application for this might be at a disadvantage if they have lived completely separate financial lives for these last 10 years.
Harder then to claim that it is necessary.
But then the pension asset would be considered along side other assets and other factors.
They should see a solicitor to either divorce or to at least formally agree their financial intentions.

atush

rpc wrote: »

I don't think pensions can have an enforced split other than on divorce - there is not automatic right for one spouse to receive an income or lump sum from the other.

Trivial commutation doesn't require an IFA but does require various conditions to be met (it isn't about one pension pot in isolation) See http://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/the-right-choice-for-me/taking-a-small-pension-as-a-cash-lump-sum

Short of divorce, there can be an income support order which would affect pensions taken.

Why havent they divorced? Do they intend to? If not, why not?

If the other party is thinking of taking a pension, I would get income sharing orders done in advance (and LS to be treated as marital assets).