A new survey claims almost three quarters of those questioned after divorce hadn’t included one of the major financial assets in their settlement.
UK courts have allowed pension sharing orders since 2000. However, despite this, the survey found 7 in 10 of those divorced had not included pensions in their financial settlements.
Of the 948 Which? members surveyed in May who had divorced since the law changed, 71% hadn’t done so. The consumer champion said leaving pensions out can lead to unequal settlements as married women tend to have smaller pensions.
This is because women are still more likely to spend time away from the workplace looking after children. They also generally have lower earnings because of part-time, lower paid work.
Research by the University of Manchester and the Pensions Policy Institute found the average married woman aged 64-69 has accrued £28,000 in private pension savings, compared with £260,000 for men.
Which? said it was concerned some couples were potentially ignoring one of the biggest assets in their marriage. Pensions are generally considered to be the second largest financial asset in most couple’s relationship, after property.
Jenny Ross, Which? Money editor, said: “Wherever possible, we encourage people to seek legal and financial advice when embarking on divorce proceedings, in order to ensure they are equipped to make the best financial decisions for the future.”
The full article can be read here.
We’ve previously shared advice about Four financial areas you must give attention in divorce.
Student Maisy Buchanan spent the week on work experience with us and wrote this fabulous review. Thanks Maisy and good luck with your studying.
In June, I spent the week at Merrick Solicitors as part of my Year 12 work experience. I thoroughly enjoyed it and on a personal level was introduced to many great people who made me want to pursue my ambition with law even further.
The experience has really opened my eyes to the hard work and determination that is paired with being a lawyer; furthering my knowledge about law but also pushing me to pursue my dreams of becoming part of the Bar.
Throughout my experience, I learned about client/solicitor relationships involving confidentiality and discovered the legal challenges for those who are pursuing a divorce, whether it involves children or finances. By familiarising myself with case progression in Family Law, I have managed to grasp and understand key terminology and abbreviations.
My understanding was aided by the helpful solicitors at Merrick, who were always up for answering and explaining any issues or questions I could not quite comprehend, and also helping with my educational studies. Keira supplied great answers for my EPQ which I’m currently completing on capital punishment.
Overall, I not only received a vast amount of knowledge on Family Law, which I hope to carry on with me to university next year, but also an understanding of the way in which a well organised and welcoming law firm runs and what it feels like to work in this perfect environment.
I have really enjoyed my time and the positive attributes I have received and can only thank those who have made my week of work experience one which I will remember. I have gained so much and it has solidified my ambition of joining the bar or even being involved in law in another role.
Thank you all so much and especially to Amanda and Heather who allowed me to shadow their work and I look forward to the possibility of working alongside them in the future.