Divorce

Question 1

How a Financial Planner can help during Divorce

Answer 1

• Income and Expenditure planning (cashflows)
• Valuing and splitting investments (reinvesting)
• Valuing pension entitlements
• Rearranging mortgage (n/a for Julie)
• Rearranging life and health insurance (more important that Peter has sufficient life cover/health cover as he is the one providing the support to Julie)

Question 2

3 Main ways to deal with pensions on divorce

Answer 2

• Offsetting (most popular, takes into account all assets, usually leaves one spouse with large pension assets and not much else)
• Pension attachment order (Court orders portion of pension benefit to be paid to ex-spouse when member retires)
• Pension Sharing (Pensions are literally split, ‘pension credit’, pension is taxable on person receiving it, own names)