Qualifying Agreement Pension Sharing
Qualifying agreement pension sharing is a process that allows couples to divide their pensions after a divorce or dissolution of a civil partnership. It is important to note that this process only applies to pensions that are linked to employment.
When a couple decides to divorce or dissolve their civil partnership, they often must consider how to divide their assets. One asset that is often overlooked is pensions. In the past, pensions were considered the sole property of the person who earned them. However, since the introduction of pension sharing orders in 2000, pensions can now be split between both parties.
To qualify for pension sharing, both parties must have been a member of a pension scheme during the time that they were married or in a civil partnership. They must have also been living together or have been legally registered as partners during that time.
Once the couple decides to share their pensions, they must enter into a qualifying agreement pension sharing order. This agreement sets out how the pension will be divided. It is important to note that the agreement only applies to the pension that was accrued during the time of the marriage or civil partnership.
The agreement can be made in two ways. The first is a clean break order, which means that the pension is divided at the time of the divorce or dissolution. The second is a deferred clean break order, which means that the pension is divided at a later date, usually when the person retires.
Qualifying agreement pension sharing can be a complex process, and it is important to seek the advice of a financial advisor or solicitor who specializes in pensions. They can help you navigate the process and ensure that you receive your fair share of the pension.
In conclusion, qualifying agreement pension sharing is a process that allows couples to divide their pensions after a divorce or dissolution of a civil partnership. To qualify, both parties must have been a member of a pension scheme during the time that they were married or in a civil partnership. It is important to seek the advice of a financial advisor or solicitor who specializes in pensions to ensure that you receive your fair share of the pension.