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Pension offsetting in divorce
Important information - the value of investments can go down as well as up so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. You cannot normally access your SIPP until age 55 (57 from 2028).
What is pension offsetting?
Pensions are shared according to the terms of your divorce. But one of the ways a pension can be split is through pension offsetting.
This is when you or your ex-partner gets a share of another asset, rather than the other person's pension.
For example:
The court has decided to split all of your combined assets 50/50. You have a pension but your ex-partner does not. The pension fund is worth £150,000 and your family home is worth £300,000. The court decides that you can keep your pension arrangement but your ex-partner is then entitled to £225,000 of the house proceeds.
| Benefits of pension offsetting | Drawbacks of pension offsetting |
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Other ways to divide your pensions
Pension attachment/earmarking orders
A proportion of the pensions are paid directly to you or your ex-partner when the benefit pays out.
Pension sharing orders
A share of the pensions is transferred to you or your ex-partner.
Important information - this information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.
