Are you a silver splitter?
You are if you are considering getting divorced, and you’re over 40.
Silver splitters are on the increase in Ireland – the number of divorced people has increased by more than 150% between 2002 and 2016, according to the results of the most recent census. The number of divorced people rose from 87,770 in 2011 to 103,895 in 2016.
And notably the average age of those divorcing is older than ever. It is at an all-time high, leading to more complex financial settlements. Later divorces mean that couples will have larger equity in their family homes, larger pension pots to divide and trickier financial affairs to reconcile. It is therefore increasingly important for couples to agree a fair separation of the pension assets, as well as the family home.
What are your options for separation of pension assets in Ireland?
A Court may serve a binding order, known as a Pension Adjustment Order, on the Trustees or Provider of a pension arrangement of which either spouse is a member, requiring a portion of the benefits to be paid to the other spouse. Separate Pension Adjustment Orders are required for each separate pension arrangement that exists. In certain situations a couple may decide that one party keeps the family home while the other keeps the pension pot.
It can be complex and even more so if one of the divorcees remarries before a Pension Adjustment Order is granted. In that case an Order cannot be granted which gives no entitlement to benefits from an ex-spouse’s pension arrangement.
If you are considering divorce, and you are a “Silver Splitter”, be aware that you will need high level financial, as well as legal advice.
We have worked on many Pension Adjustment Orders for clients and can provide the kind of advice you need to ensure you are well covered on all of your options.
If you would like to have a confidential conversation, contact us.