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Splitting pension benefits

In recognising the value of pension benefits on separation or divorce, the court may require a proportion of your pension benefits to be paid to your spouse/civil partner/qualified cohabitant, or to be set aside for the benefit of a dependent member of the family. Alternatively, the court may take account of pension benefits by, for example, making an adjustment to the allocation of non-pension matrimonial assets such as the family home.

For the purposes of the legislation, ‘pension benefits’ refers to rights earned under any type of pension scheme or arrangement. This would include benefits arising from membership of an occupational pension scheme (including additional benefits acquired due to payment of additional voluntary contributions), personal retirement savings accounts, personal pensions (retirement annuity contracts) and buy-out bonds.