For many of us, pensions are simply seen as the most effective means to provide for retirement; a regular payment over what can seem like an eternity in the hope of a comfortable old age.

Nowadays, pensions are actively used prior to retirement, for instance, as security for a mortgage on the family home.

They have also started to play a more prominent role where a couple decide to divorce, when a pension can often be the most valuable asset after their home.

The pension holder may naturally shudder at the prospect of this hard-earned, long-term investment suddenly being 'attacked' but in practice this less conventional means to fund a financial settlement on divorce can work to the advantage of both husband and wife

For instance, where a couple have pensions benefits provided from the same source, perhaps through the family company, it may be possible to transfer funds between themselves thereby generating an income which would not otherwise be available.

This can enable the husband, as is typically the case, to secure a financial clean break without having to raise a substantial lump sum from his own resources, whilst the wife receives a guaranteed income independent of her husband's future fortunes.

Pensions are a complex investment which cannot simply be sold and the proceeds divided.

It is, however, clear that as the Government strives to expand the options available to adjust pension benefits on divorce, gone are the days when it was simply the bricks and mortar with which divorce lawyers were concerned.

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