Pension in case of divorce

Among many important issues, dividing a pension is also a serious question in case of a divorce. It should also be taken into account if the divorce happens before the actual retirement, but both of the parties pay their pension contribution in the same fund as a common source of benefits after the retirement.

In case that both of the parties are high earners, it will be easier for the court to arrange an agreement by an equal division of the assets of the couple. If the divorce happens after the retirement of both parties or they are relatively low earners the pension has more importance and things might become really complex. When the couple paid the pension contributions in a fund with defined contribution schemes the financial aspects of the division are relatively easier and therefore the whole procedure become shorter.

Basic State Pension contributions and related additonal pensions such as a State Second Pension contribution are also relatively easy to divide and they are usually carried out in such cases.

If the couple made the private pension contributions to a defined contribution plan, the process is usually the longest, because in case of that kind of scheme it is the most difficult to determine the division.