Pensions sharing on divorce

The Department of Social Security (DSS) has announced measures to implement pension sharing on divorce which will be available for couples divorcing from 1 December this year.

The DSS says that "pension sharing will:

* allow pension rights to be treated in a way which ensures the fairest overall settlement for all couples who have pension rights on divorce;

* provide greater scope for divorcing couples to achieve "clean-break" settlements; and

* provide a more secure retirement income for those receiving a share of pension rights, many of whom will be women."

Social security secretary Alastair Darling argues that "Over time, pension sharing will help to reduce the number of divorced women who experience poverty in retirement."

Pension sharing will for the first time give divorcing couples with pension rights the option of sharing pension rights as part of the matrimonial settlement. Pension sharing will also cover rights held under the State Earning Related Pension Scheme (SERPS). Separate regulations to deal with the sharing of SERPS will be made later this year.