- Valuable pension benefit often lost on divorce
Valuable pension benefit often lost on divorce
Valuable pension benefit often lost on divorce19th October 2020 - Published by Kuits family team
The number of couples divorcing over the age of 60 is increasing each year, and the ongoing pension provision for such couples often form a significant part of the negotiations and discussions in trying to reach a financial settlement.
Whilst private and employer pension schemes are usually dealt with as part of that process, either by way of pension sharing orders or offsetting against non-pension assets, state pensions are frequently overlooked, and older women are missing out on a potential boost to such pensions.
In certain circumstances, pension regulations allow women to substitute their former husband’s National Insurance record for their own, thus increasing the weekly state pension they would receive. Such substitution is not automatic and the onus is on that person to notify the Department for Work and Pensions (DWP) of the change in marital status and for a reassessment of their pension.
Data from the Family Resources Survey suggests that there are approximately 100,000 divorced women over state pension age who are not receiving a full basic state pension. Many will be women who divorced before pension age and who are not getting a full pension, even with the benefit of an ex-husband’s contributions. However, a large number are likely to be women who divorced after reaching pension age and who have not yet had their pension reassessed.
Accordingly, we would advise any women that have reached pension age and have since divorced and are not in receipt of a full basic state pension that they should contact the DWP to see if they are entitled to an increase based on their ex-husband’s contributions.
Get in touch with a family solicitor in Manchester
For further advice on this please contact Colin Davies on 0161 838 8180 or email email@example.com