Divorce, Dissolution and Military Pensions
Mar 29, 2017
Divorce, dissolution, and military pensions
One of the realities of a relationship breakdown is that, alongside the emotional challenges, there will be practical things that just have to get sorted out.
High on the agenda will be the division of assets. During your marriage or civil partnership you will have accrued savings, property, investments, and possessions. But one of the most significant financial benefits for couples in the Armed Forces is the military pension.
There are different types of schemes and specific issues that go along with these. Military pensions are their own breed. So it takes specialists like us to give proper advice, whether you are the pension-holder who wants to protect this asset as best you can, or their partner who feels entitled to some part of it.
You’ll know that the pension’s value will be determined by rank, length of service, and the age of joining. One of the first things to establish, therefore, is how much the pension is worth (the Cash Equivalent Transfer Value, or ‘CETV’) and how that might be affected in the future. You can get hold of the CETV by applying to Veterans UK.
While your military pension’s value will be prescribed, the way in which that pension must be dealt with on separation is not. It could be shared, or you could offset your claim. In certain circumstances, it’s advantageous, sensible, and fair for a partner to be given other jointly or individually-held assets – such as a house or significant savings – instead.
Few people go into a marriage or civil partnership with thoughts of how much they stand to gain, or lose, financially should things not work out. So if you feel unprepared for a discussion about the ins and outs of your family’s finances, you won’t be alone. Talking this through with a solicitor who you trust to listen, to get you through this divorce or dissolution, and to set you up to move on, is the best step you can take.
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