At
Alexander Beard, we offer a UK based, FCA regulated service to
individuals who are to receive pension funds when instructed by a court
order. It is quite simple for the order to be made, however the actual
facilitation of the request can be very difficult to complete,
especially if the beneficiary is non UK resident.
An example of the Cross Border Pension Sharing service we offer –
Mr and Mrs Jones live in the United States and are divorcing. A court
has ordered that Mr Jones pay his wife 50% of his UK based occupational
final salary pension scheme. Mr Jones’s pension provider would normally
insist that a cash equivalent transfer value is calculated and the 50%
share must be moved to a new pension provider under the name of Mrs
Jones.
As Mrs Jones is non UK resident, it will be very difficult for a new
UK pension scheme to be created for her. She may benefit from an
overseas pension scheme but this is entirely dependent on her tax
situation and the tax regime of the country she now lives in.
Alexander Beard reviewed her current situation and provided a
solution which allowed her share of the pension to be transferred to a
new UK based pension scheme in her own name. On this occasion it was
agreed a UK based pension scheme would be just as tax efficient as an
overseas arrangement.
After providing the advice and solution, we facilitated the transfer
of the pension and provided ongoing pension and investment planning
support to Mrs Jones. This helped her understand what her pension would
likely provide for her in retirement.
At Alexander Beard, we can help facilitate the pension sharing order
and provide the financial advice pertinent to the country the person now
lives in. We are experienced in this process therefore transfer times
are kept to a minimum thus shortening what is generally seen as a
stressful time when people divorce.
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