Pension Offsetting Flashcards by Robert Isherwood

Q

What is pension offsetting?

A

An agreement where the member preserves all of some of their pension pot in exchange for other matrimonial assets such as the home.

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Q

What are the benefits?

A

Member gets to preserve pension benefits

2. Ex Spouse/CP keeps assets such as family home

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Q

What are the drawbacks

A

Ex Spouse/CP may get house etc but will not have a retirement income
The member will be taxed on 75% of pension benefits where as the Ex Spouse/CP may have tax free/efficient assets

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