Divorce, separation and financial advice.
Amongst all things this is a very stressful event and process.
On a practical basis the fall out will have/can have significant and complicated tax outcomes for all involved.
As a financial planner and experience in this area, we have seen that there are there are many legal approaches for a married couple who wish to separate – some with no formal arrangement – however, there are key IT, CGT and CAT questions that recur.
Where tax issues arise then there is increased potential for conflict keys - areas maintenance, property/investments, pensions and succession.
A well outlined tax plan, legal plan and financial plan – a map from start to finish is a critical starting point.
Pension advice.
Any attempt to separating couple to divide the pension fund will not work.
Trustees of the scheme are bound by terms of the scheme.
Amongst financial settlements – Judicial Separation, Divorce, Dissolution – is a Pension Adjustment Order (PAO). A POA designates part of the pension for payment to the spouse/financial dependents. The Judge decides how much. Main factor is to “make proper provision” for the spouse and financially dependent members of the family. A designated part of the pensions made payable to the spouse / dependents. POA is served on the trustees, who will then make necessary adjustments to the provision of the members pension.
Pensions can be complex and specialist legal counsel advice/guidance is recommended.
If a spouse/civil partner refuses to disclose details of pension to the other party. They can seek information directly from trustees of the pension scheme.
Before any changes made to pension scheme we recommend checking the details of the scheme – guarantees, charges on transfer, fund choice/risk and other attaching benefits – contingent benefits such as life cover and long term sickness benefits.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
RETIREMENT & PENSIONS | INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE
Nelson Life Limited trading as Nelson Life is regulated by the Central Bank of Ireland.
WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.