Divorce settlement - Does it count as Income

Thomas260589

I am currently going through a divorce and the only assets are my DCOccupational pension pots. I want to split 50/50 with my ex wife however she would prefer a regular income.


Can I offset the value of one of the pots by paying her a regular payment and if so, does this impact her Universal Credit claim (in other words does it count as Unearned Income?

atush

What does your solicitor say? If your pension s the only marital asset (ie no savings, no house, no cars etc) then you just split it. A judge will decide if she is due any maintenance. Do you earn more? What is her pension like?

She cant have regular income from her half of the pension until she is 55. Then she can decide how to take it.

crv1963

Thomas260589 wrote: »

I am currently going through a divorce and the only assets are my DCOccupational pension pots. I want to split 50/50 with my ex wife however she would prefer a regular income.


Can I offset the value of one of the pots by paying her a regular payment and if so, does this impact her Universal Credit claim (in other words does it count as Unearned Income?

Divorce is complicated which is why each case is judged on its' own merits. There are broad parameters that are applied- this depends on many things but roughly, ages, length of marriage (which includes pre-marital co-habiting), housing need, dependent children, health, resources.

If a long marriage the court would expect to leave each party with an equal share of the marital assets, including pensions. Generally this is through a pension sharing order, that is why both have to complete a Form E financial declaration.

Following exchanging Form Es then you can agree with your wife how you split the assets up and submit it to the court and if judged to be fair and even handed you will get a court order which then becomes legally enforceable if you do not follow it.

If you are still accumulating then it would probably be more reasonable for the pots to be split because you could die if it is a DB pension and she then get nothing as you would be divorced or re-marry, likewise a DC pot you could nominate someone else to get it on your death. Edit- just re-read and it is all DC pot so your idea is the most likely and you may or may not have to pay spousal maintenance depending on your income level.

You need a "clean break divorce" to separate you both financially from each other.

Depending on how you are getting along with each other is how stressful the whole process is. Try to separate the emotion from what is actually a business process - that is how I dealt with my divorce.