Five essential tips for handling military pensions in divorce

When going through a divorce, understanding how to handle military pensions can be complex and overwhelming. Here are five essential tips to help you navigate this process effectively:

1. Consideration of pension accrual periods

It's not always appropriate to consider the entirety of the Armed Forces Pensions in every divorce case. The court can disregard pre-marital and post-marital accruals under certain circumstances. Key factors such as the length of the marriage, the age of both parties, other financial resources available, and when the pension was accrued are crucial in deciding how to deal with a military pension during a divorce.

2. Obtain your pension Cash Equivalent Transfer Value (CETV)

To enable the court and involved parties to consider your military pension accurately, you will need to request your pension Cash Equivalent Transfer Value (CETV). This requirement stands even if you and your spouse have reached an agreement on financial matters. Be aware that there is a fee for obtaining this necessary information for divorce proceedings.

3. Understand different pension benefits

Different pensions offer different benefits, making it inaccurate to simply add up the CETVs of all pensions and divide by two. This method might equalise the CETVs but not the pension incomes or lump sums. Each pension needs to be evaluated on its own terms to ensure a fair distribution.

4. Separate treatment for each Armed Forces Pension Scheme

Each Armed Forces Pension Scheme (AFPS) can be dealt with separately. In some cases, it might be fair and reasonable to share only one scheme, such as the AFPS 1975, even if the pension holder has other pensions in schemes like AFPS 2005 and AFPS 2015.

5. Prepare different pension sharing annexes

When sharing pensions by way of a Pension Sharing Order, different Pension Sharing Annexes need to be prepared for each pension involved. The Armed Forces Pension Scheme charges a separate fee for each Pension Sharing Annex, so it's important to plan accordingly.

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By keeping these tips in mind, you can better navigate the complexities of military pensions during divorce, ensuring a fair and accurate division of assets.

Navigating the intricacies of military pensions during a divorce can be challenging. If you need expert advice tailored to your specific situation, our experienced solicitors are here to help. Contact us today for a consultation and let us guide you through the process with clarity and confidence.