When it comes to dividing matrimonial assets, pensions can be valuable assets. However, in order to place a value on the same, the Court and solicitors require what is called the Cash Equivalent Transfer Value (“CETV”) of the pension/s. The CETV can be obtained by contacting the pension provider.
As a result of the change to the discount rate announced by the Treasury in March 2023 for public service pensions, the factors used to calculate CETVs for non-club transfers and pensions on divorce are being changed. CETVs for pensions on divorce cannot be provided unless the effective date of the pension share was on or before 30th March 2023. This is causing considerable delay for divorcing couples making the already long process of divorce, even longer.
Pensions are dealt with separately to capital when we are looking to divide the matrimonial pot and as such, it could be a significant risk to settle your finances without having first considered the position in relation to pensions. You could otherwise be underselling your claims. Your solicitor will only be able to provide specific advice about pensions, after having sight of the CETV in relation to the pensions available. Whilst guidance was published by the Treasury at the end of April 2023 confirming that the suspension has ended, many are still waiting to receive the CETVs in relation to their pensions.
If you need further advice in relation to this delay and what it could mean in relation to your divorce, our expert lawyers are here to assist.
Author: Fay Jones