Family lawyer organisation, Resolution, has issued two joint notes to assist family lawyers in England and Wales ahead of the end of the Brexit transition/implementation period at 11 pm on 31 December...
Divorcing and sharing assets such as pensions can be
challenging at the best of times. Bring in a non UK resident into the equation
and this makes things even more difficult.
You, as a matrimonial law professional do not have an
obligation to provide pension planning advice on how your non UK clients can
receive pension funds. However, there are Financial Conduct Authority (FCA)
regulated advisory firms who have the experience and knowledge to provide cross
border, pension sharing solutions to your client. Allowing a professional to
help you and your clients will greatly speed up the process and ensure that
they receive the correct solution and tax advice, they will need.
The key points that you client will need to consider;
UK pension providers will not accept non UK residents
implications in the country of residence when benefits are distributed
from the pension
risk and the dangers of having your pensions denominated GBP and spending
another currency in retirement
benefits / drawbacks of UK pensions compared with overseas options
choosing a cross border pension sharing specialist, it’s important that they
are FCA regulated and are only fee based. There are overseas financial advisers
that can be unscrupulous who are motivated by the large amounts of commission
on offer with regard to pension transfers so they need to be avoided. Properly
regulated cross border pension sharing experts are available, who can help you
and your clients, quickly and efficiently in what usually is a stressful time. The full version of this article appears in the June 2015 issue of Family Law.
Online subscribers can access the full version of the article here.