UK and Cross Border Pension Sharing service
by Alexander Beard, on May 6, 2015 5:06:04 AM
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 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.