Skip to main content
how to protect your pension
Legal news

Is your financial settlement at risk from the new pension reforms?

Wendy Campbell Wendy Campbell
2 min read

The new pension reforms mean that divorcees who have the benefit of a Pension Earmarking Order may lose out. They could discover to their detriment that as an unforeseen consequence of the pension reforms that they do not receive the benefit of their rights under their existing Pension Earmarking Order. These days it is unusual for an Earmarking Order to be made, and these orders are far more common with couples who divorced before the millennium when Pension Share Orders were not available.

Under an Earmarking Order, a share of the pension income is paid to the former spouse when the pension holder (member) retires. There were limitations with an Earmarking Order which caused these orders to become unpopular once Pension Share Orders were made available in December 2000.

The new pension rules mean that members are now free to withdraw their entire pension as cash and not take a pension income.

Consequently there is a real risk if you have the benefit of an Earmarking Order, which pays you a fixed percentage of the pension income, that you could completely lose out if your former partner decided to withdraw the entire pension as cash. Therefore it is vital that you check your financial settlement immediately to see if your rights are protected in the event that your former husband withdrew his pension as cash. This is particularly important if your former husband is approaching the age of 55.

What do you need to do?

You should find out if the wording of the Earmarking Order protects you in this situation. As the old earmarking system would not have accounted for the possibility that a member might one day be allowed unlimited access to their money it is therefore unlikely that the old Earmarking Order will protect your legal position.

What do you do if you are not protected?

If the old order does not protect you, you should take immediate legal advice from a family lawyer experienced in this area, to check whether you can amend the order as it may be possible to make amendments but only before the fund is emptied. Urgent amendments and appropriate undertakings may be potentially sought to protect your position.

For further advice about family law and check if your own Pension Earmarking Order is at risk, please contact our experienced family solicitor Wendy Campbell on 0113 320 5000 or byemail @email.

Client feedback

I cannot speak for Winston Solicitors as a whole, but I can confidently recommend Leasa Foster, who we’ve used twice now for moving house. On both occasions she has been outstanding. Without her, I’m certain the chain would have fallen into disarray, and completion would have been delayed by at least a month or two.Leasa took control, coordinating solicitors both above and below us in the chain to ensure paperwork was completed on time. In fact, some of the documents that others were only just starting, she had already handled months in advance.Overall, I’m extremely satisfied with the service from Leasa, Julie, and the team at Winston Solicitors. I’ll have no hesitation using them again—unless Leasa moves firms!
Jack
We’ve used Winston Solicitors for three property transactions now, and they have been outstanding every time. Sidraa and Tom always go above and beyond – communication is clear, there are never any delays from their side, and the whole process is handled smoothly from start to finish. We’ve even recommended them to friends, who were equally impressed. I always get asked by Estate Agents to use their solicitors but always politely decline because of the service Sidraa and her team offer.
Tariq
Effecient and pay attention to every single details, highly recommended
Anonymous
Winston solicitor's was chosen by us to handle the conveyancing for our house sale and purchase. We were appointed Sam as our solicitor and we couldn't have asked for anyone better. Sam went above and beyond to assist me with my enquiries, demonstrating an impressive depth of knowledge. Our sellers solicitors could be quite problematic at times but Sam worked hard to ensure that obstacles were handled promptly, and that we were kept up to date with any progress.What stood out for me was Sam's genuine commitment to customer satisfaction. Her friendly demeanor and positive attitude created a welcoming atmosphere making me feel valued as a customer. In conclusion Sam exemplifies the epitome of customer service. Her professionalism, expertise, attention to detail and genuine care for the customer deserves recognition. I would not hesitate to recommend Sam to anyone seeking an exceptional service. Thank you for your outstanding support and dedication.
Mr & M
Winston Solicitors were excellent throughout our house purchase process. Leasa and Michelle who handed our conveyancing were very responsive. Highly recommend.
Mr Agunwa
I've used Winston Solicitors on multiple occasions for property sales an also to purchase and it will definately not be the last.This firm is professional and a massive shout out to sidraa who both times dealt with my purchase & sale of property.She is an absolute asset to Winston Solicitors and is the best out there at her job.Please keep up the great work and hopefully speak to you all again soon on my next purchase.
Noor
Winston solicitors were absolutely brilliant from start to finish. I was a first time buyer and had so many questions and worries. Michelle made the process as smooth has possible. She was always on hand to answer any queries and was very responsive. My purchase went through very fast. I could have not ask for a better solicitors and would highly recommend to anyone.
Kimberley
We’ve just completed a sale and purchase with Winston Solicitors and honestly couldn’t be more impressed with the service. Leasa, Julie and the team were fantastic from start to finish - thorough and very efficient, even when things were stressful and complex in our chain. Communication was clear and prompt throughout, and we always felt reassured that they were on top of every detail.It was our first time buying and selling which was quite a stressful process but we felt in very safe hands with Winstons and we wouldn't hesitate to recommend them. Thank you!
Emma
Contact Wendy