Divorce changes will benefit women
Saturday 25 February 1995
and JANE SUITER
The House of Lords is not always been associated with progressive legislation. But this week, its members were given advance notice of a change that, assuming it is adopted by the Government, is likely to benefit up to 200,000 women a year.
The Government announced that legislation will be enacted to allow the formal inclusion of a partner's pension in future divorce settlements in England and Wales. Similar provisions already apply in Scotland.
Changes will be brought both to the Matrimonial Causes Act and to the Pensions Bill now working its way through Parliament. It is also proposed that ways of calculating the amounts to be apportioned will be published by the Government at a later stage. But details of what the Government intends remain unknown at this stage.
Women hoping for immediate relief from the problem of what to do about their pensions in the event of divorce should not hold their breath. In Scotland, where the courts are entitled to consider both partners' pensions as part of a divorcing couple's total assets, it has not always proved easy to resolve matters.
Pensions are broadly calculated by reference to their capital value between the date of marriage to the date of divorce. Actuaries are used to working out solutions to issues such as retirement age options, which affect the pension paid or the lump sum element payable to the person who retires.
Until now, the only way division of the pension spoils could be considered was if the remainder of the couple's assets was equal to or greater than the pension, usually a man's, that should be divided.
Clean-break settlements can be arrived at whereby the woman receives cash, or the house, in return for the pension staying with the man. However, problems start if other assets are worth less.
Duncan Howorth, managing director of Abbey National Benefit Consultants, said: "It has been known for a man to go into debt in order to pay the divorced wife a greater lump sum cash settlement and keep the pension.
"In England and Wales even now, it is possible to arrive at a similar settlement, usually when lawyers for both sides agree to include a pension in the divorce settlement. But a husband cannot be legally compelled to do so."
Exactly how the changes will be made is vital to Caroline Fletcher. She was married for 20 years until her divorce and now lives on £42 per week income support. During the marriage, Mrs Fletcher worked as a nurse to supplement the family income and support their son Sean, now a student. When she thought about joining the nurses pension scheme, it was agreed her husband's pension would be more than enough for the two of them in retirement.
"I bought furniture and other things for the house. Now I don't have anything and I have to sell the house. I think the law has let me down," she said.
The Pensions Management Institute, which represents experts in the profession, has proposed that both divorcees are given an equal share of the total funds to keep until pensionable age, or to transfer into a separate fund.
The issue still to be resolved by the Government is how to deal with the fact that trustees may not always be willing to go to the extra trouble and expense of creating two pensions out of an original one.
The problem becomes worse in the case of many unfunded pensions, such as teachers', nurses' or civil servants' schemes.
Roddy Kohn, an adviser at Bristol-based Kohn Cougar, warned against complacency: "No matter what happens, the sensible thing for women to do is to make provision for themselves."
Crowd-to-let: How crowdfunding sites can give investors a slice of the property market for £500
General Election 2015: How you vote next week could affect your finances
Dirty tricks in a divorce can cause some nasty surprises
Beware credit card firms’ odious tricks
10 tips for taking out a personal loan
- 1 How the language you speak changes your view of the world
- 3 Italian police 'reveal' what Jesus looked like as a young boy
- 5 YouTube social experiment shows just how easy it is to kidnap a child
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
In defence of liberal democracy
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
Day In a Page
This detached four-bedroom home in Middleyard is arranged over two floors, with features that include a wood-burning stove and bespoke oak staircase.
In a row of eight detached Georgian residences, this five-bedroom home offers views of The Sound, Mount Edgcumbe and Cornwall from its impressive veranda and full-length balcony.
If you love cooking for friends this two-bedroom flat - complete with views of the iconic Battersea Power Station and an open-plan kitchen/dining area - will go down a treat.
Located above Grasmere village, this five-bedroom home is arranged over three floors and offers countryside views across Grasmere Lake towards Silver Howe.
Surrounded by the Western fells, this five-bedroom Georgian home retains many original features including panel-plastered ceilings, sash windows and fireplaces.
This six-bedroom home is set amongst three acres of grounds. Currently a large family home, Clift Hill has potential to make a B&B, subject to change of use permissions.
A former period coach house, Glebe Farm Stable is now a three-bedroom cottage with a double car barn, office, kennels and an outbuilding that's currently used as a gym.
Set sail for this four-bedroom farmhouse in Cowes. With five acres of land and an indoor pool, this home oozes character. There is even potential to let a one-bedroom annexe.
Surrounded by woodland, this five-bedroom manor house has plenty of outdoor storage space in the form of three converted loose boxes, two smaller outhouses and a woodstore.
This four-bedroom detached home comes with a double carport, useful workshop, garden and two walkways that offer views of the adjacent countryside.
With space for an equestrian business, a greenhouse for growing your own veg, a wine store and a gym; this five-bedroom home has all the ingredients for a country retreat.
This four-bedroom home has exposed brick chimneys and a vaulted ceiling in a breakfast room that's ideal for summer entertaining - the doors open to the patio and garden.
The decked roof terrace of this two-bedroom flat is perfect for summer drinks while large windows and ample storage space make for a light and spacious interior.
Surrounded by approximately 15 acres of grounds, this six-bedroom grade II-listed home has been extensively refurbished yet retains many period features.
This four-bedroom home comes with a two-bedroom cottage and commercial office, with planning to extend, in a stunning courtyard setting.
In a pretty Norfolk village, this four-bedroom family home is surrounded by landscaped gardens, with even a self-contained annex for guests.
A few miles from the seaside at Perranporth, this four-bedroom farmhouse sits amongst nine acres of idyllic grounds - including a lake and two barns used as holiday lets.
This five-bedroom home is arranged over three floors of a converted Victorian hospital, offering spectacular views of the Pentland Hills - only three miles from the city centre.
This four-bedroom detached home comes with grounds that span to approximately 2.5 acres, as well as two large patio areas and a double garage.
This four-bedroom cottage is a Grade II-listed town house, well-located for the thriving market town of Nailsworth.
A four-bedroom apartment on the ground floor of a stunning period property in North Yorkshire, with two kitchens and a large south-west facing garden.
This high-spec two-bedroom home is part of a smart collection of new flats at Beaufort Park and has a large decked balcony that's perfect for summer drinks.
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Overlooking a golf course, this six-bedroom Edwardian detached home spans four storeys and retains many period features including the original, operational servants' bells...
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
In a Grade II-listed manor just outside of Bath, this three-bedroom home is arranged on two floors with a skylight in a vaulted roof line.
Open the living room's bi-fold wooden doors to reveal a retro-style kitchen, and a conservatory leading to a paved garden at this three-bedroom home.
A Grade II-listed, four-bedroom home, in a charming Somerset village, with a two-storey studio that could be converted into a holiday cottage
A modern four-bedroom Victorian home, within walking distance to the high street
A luxury apartment in the Gothic mansion of Wyfold Court in Kingwood, offers six bedrooms spread over three floors and a turret
This school conversion, near Stockwell Tube, oozes New York loft style. The one-bedroom flat features double height ceilings and exposed brick work
This six-bedroom Georgian home is on three floors with open fireplaces, a two-oven Aga, an annexe, and cottage gardens with outbuildings and a car barn
High Crest House covers an impressive 9384sq ft, with almost three acres of grounds including a tennis court and summer house enclosed by electric gates
A six-bedroom farmhouse with separate accommodation in converted stables. Situated in the village of Church Aston, within walking distance to the market town
A two-bedroom flat with under-heated walnut floors and bespoke built-in storage. The Tube and Clapham Common are a short stroll away
A refurbished seven-bedroom townhouse with staff quarters, cinema room, superb gym, steam room and plunge pool
A minimnalist four-bedroom home designed to the highest spec, featuring glass walls and a kitchen space lit by a glass roof
Hibernate during winter and make your living during the summer at this busy guesthouse with panoramic sea views, in the village of Lynton
A four-bedroom penthouse next to the Tate with direct views of St Paul's from two floors of luxurious living space
A four-bedroom detached home surrounded by spacious gardens and woodland, close to New Pudsey
An 18th-century, three-bedroom home near Langstone Harbour built from ships beams with vaulted ceilings and wood burning stoves
A five-bedroom semi-detached home with a mix of period and modern features in a popular and convenient location
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park