Tahina Akther, Director Wildcat Law, College Chambers
This article explores the main types of pensions commonly encountered, defined benefit (DB) and defined contribution (DC) and why they should be treated differently.
So, pensions appear to be topical again amongst family finance practitioners, it seems to be a cyclical occurrence but as pensions are often the second largest assets in divorce it is no wonder. Whilst the Pension Advisory Group report was a very welcome publication there is still some way to go.
Unfortunately there remains a magnetic attraction to treating all pensions as if they were DB schemes by the Courts and many legal practitioners. In an age where the majority of pension members belong to Dc schemes this leaves the legal system at risk of holding at best obsolescent views and at worst downright obsolete ones with regards to the treatment of pensions in divorce. This article argues an alternate method of treating pensions and indeed wider marital assets that provides a more practical and ultimately fairer solution.
The full article will be published in the June issue of Family Law.