Our latest guest blog on The Divorce Magazine asks what you need to do if your ex won’t provide details of the Cash Equivalent Transfer Value of a pension.

When it comes to divorce, pensions are treated just like any other asset.

However, unlike bricks and mortar, it can sometimes be difficult to establish whether a pension exists and what it might be worth. This can become even more difficult in an acrimonious split, when one partner refuses to divulge the financial details of their pension arrangements.

If this situation arises, there are number of steps you can take with the help of a specialist solicitor.

First, you need to find out if a pension exists. A useful first step is to take advantage of the Government’s Pension Tracing Service – an online database containing details of all workplace and personal pension schemes.

Although you won’t be able to search your partner’s details, you can make an application to the court for them to be forced to make search by putting in all of their past and current employers, together with any personal pension providers that might be relevant. This won’t give you the value of the pension, but it will tell you who the provider is and give you details of where to write for more information.

The next step in securing a fair allocation of assets is to find out how much the pension is worth by obtaining a calculation of the Cash Equivalent Value (CEV) of the pension benefits that have accrued.

Under normal circumstances, this information is put on the table along with any other assets in order to work out what each spouse is entitled to. However, it does happen occasionally, when relationships have completely broken down, that this information is not produced.

In cases of a refusal to provide CEV information about a known pension fund, there is provision in law for the court to require the member spouse to obtain information and also for the court to order the pension provider to supply that information to the court.

To make that happen, the non-member spouse’s solicitor would send a copy of the application for a pension sharing order direct to the pension supplier. It is then obliged to provide certain information to the member, including the value of the pension benefits. If the member spouse refuses to disclose that information, an application can be made to the court for a separate order for this information to be provided.

Once all of the information is before the court, it enables a decision to be made about how the pensions should be split equitably between the parties. This split can take a number of forms, of which the most usual are:

• Pension sharing – where you receive a percentage share of any one (or more) of your ex-partner’s pensions. This is either transferred into a pension in your name or you can join your ex-partner’s pension scheme, depending upon the pension scheme rules and independent financial advice;
• Pensions offsetting – where the value of any pension(s) is offset against other assets, for example, you might obtain a bigger share of the family home in return for your ex-partner keeping their pension.

Amid the stress and emotional turmoil of divorce, it can be difficult to think beyond the day-to-day. However this is precisely the time to focus on planning ahead and avoid later regrets about failing to make adequate provision for the future.

For more information about financial claims on divorce or any aspect of family law call our team of experts at Jones Myers on 0113 246 0055 or tweet us on @helpwithdivorce

The post Steps to take if your ex won’t provide details of the Cash Equivalent Transfer Value of a pension appeared first on Jones Myers.

Based on an American academic survey the newspaper story claims that rowing about finance is more of a predictor of divorce than arguments about children, in laws and sex.

Behind the headlines is a serious message about the importance of couples discussing their finances openly and honestly.  When a husband and wife have not shared their individual finances with each other within their marriage this can often contribute to problems during divorce proceedings.  One party may have no idea where the budget line is – or even where it should be drawn – and may have unrealistic expectations of what they are entitled to, or what is a realistic and affordable financial settlement.

During their marriage a couple may have hidden finances from the other or argued endlessly about money.  However, when it comes to the divorce process there is no avoiding a full and frank disclosure of each partner’s finances. Neither party can put his or her head in the sand, nor should they believe that they can squirrel away assets.

Financial disclosures are designed to protect both parties and to ensure that each receives a fair settlement.  Below are some the key elements of this critical aspect of any divorce.

•  Essential paperwork you must complete You will be asked to complete what is known as a ‘Form E’ and provide evidence of your assets and finances in the UK and abroad including bank statements, business accounts, tax returns, mortgage statements, valuations of any assets, such as pensions, property together with evidence of any financial liabilities.

•  How Form E is used Lawyers will collate this documentation then exchange it with your husband or wife’s lawyer as part of the divorce negotiations.  If you fail to submit the relevant documentation, or your ex or his or her solicitor suspects that vital paperwork is missing, then a lawyer may believe that you have not made a ‘full and frank disclosure’ and can apply to the courts for a judge to deal with the financial matters. You could be fined or even imprisoned – almost certainly you will face additional costs, particularly if lawyers have to pay for specialist help to track down your missing finances.  Equally import will be the damage to negotiations.  There will be suspicion and uncertainty which may well prevent a negotiated settlement and consequently create delay and additional costs.

•  Concealing assets Lawyers and judges know every trick in the book and will ask questions if they suspect that money has been concealed and may even employ forensic accountants to track down missing assets. Don’t be tempted to hide money in offshore banks because you will be found out and family courts have the power to question your accountant, your financial advisor and even your bank manager.  Nor should you set up a new business shortly before separation as a suspicious lawyer or judge could see this is a deliberate attempt to hide assets within a company structure.

• Take a non-confrontational approach At Jones Myers we believe that wherever possible negotiation is key to resolving critical, yet often challenging, financial settlements. This approach, which sees a couple and their lawyers working together discussing the issues and debating different solutions to meet the needs of both parties, can avoid the trauma of court and reduce pressure and anxieties.

• Play fair for a lasting solution.  If you cheat with your finances and assets and you are found out then a court can overturn the original settlement.  However, if you play fair and are transparent then you and your ex can avoid further emotional upheaval and costs with both of you able to move on in your lives.

If you have any questions or concerns about the financial aspects of divorce, or any issues relating to the breakdown of a marriage or civil partnership, then do email us or give us a call on 0113 246 0055.

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