An appeal over the way a pension in payment is treated in a divorce settlement has set a precedent to stop them being treated as capital assets.
Under previous Pensions on Divorce Regulations which came into force on 1 December 2000, there were three things a court could do when taking pensions assets into account as part of a divorce settlement: A court can take is to offset the pension assets, which is where one party gets to keep their pension while the other is awarded an asset, such as the family home, which has an equal value. Although rarely used, it is possible for the court to earmark part of a person’s pension, so when it comes into payment the ex-spouse will receive a certain amount of income. A pension sharing ord...
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