Divorce Flashcards
1
Q
How a Financial Planner can help during Divorce
A
- Income and Expenditure planning (cashflows)
- Valuing and splitting investments (reinvesting)
- Valuing pension entitlements
- Rearranging mortgage (n/a for Julie)
- Rearranging life and health insurance (more important that Peter has sufficient life cover/health cover as he is the one providing the support to Julie)
2
Q
3 Main ways to deal with pensions on divorce
A
- Offsetting (most popular, takes into account all assets, usually leaves one spouse with large pension assets and not much else)
- Pension attachment order (Court orders portion of pension benefit to be paid to ex-spouse when member retires)
- Pension Sharing (Pensions are literally split, ‘pension credit’, pension is taxable on person receiving it, own names)
