Fair Sharing in Divorce – Not When It Comes To Pensions
According to a recent study by Scottish Widows, women are currently losing out on around £5bn annually during divorce proceedings because of a lack of discussion surrounding pensions.
Scottish Widows have highlighted that nearly three quarters of divorced people (71%) did not discuss pensions during their divorce proceedings despite 56% of those people expressing that they would wish to fight for any jointly owned property.
There seems to be some confusion when it comes to pensions with almost half of divorced women (48%) admitting that they had no idea what happens to pensions when a couple gets divorced. Parties to a divorce are entitled to a fair share of the matrimonial property, with Section 10 (5) of the Family Law (Scotland) Act 1985 stating expressly that benefits under a pension agreement form part of the matrimonial property. Despite this provision, it is evident that pension interests are not being adequately identified as a priority. As a result clients are losing out on significant sums of money and this will likely have an impact on their long-term financial stability. This is clear given that Scottish Widows have identified that only 52% of women have saved adequately for retirement for in contrast with 59% of men. It is therefore essential that pensions, and parties’ interests in them, must become more of a priority during divorce proceedings. By doing so, fair sharing in divorce can be more readily achieved.
Should you require any advice with regard to your divorce, please do not hesitate to contact Hamilton Ross who would be more than happy to assist.
This blog was written by Robyn Tracey, LLB (Hons), Dip LP.View all →