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Impact of Two Pot Retirement System on Divorce
The pension interest from your marriage is made up of:
The vested pot
A savings pot
A retirement pot
At divorce, the pots are typically dealt with as follows depending on your marital regime:
Married in community of property : pots are divided equally between spouses.
Married out of community of property:
With the accrual system, the pots become part of the accrual calculations unless they were expressly excluded in the ante-nuptial contract.Without the accrual system, the pots might still be taken into account if the court orders an asset redistribution.
Spouses could have agreed to a different split in an ante-nuptial contract when they got married, or in a settlement agreement at divorce .
Proposed changes are covered in 3 articles:
Faking divorce to withdraw retirement savings Faking divorce to effect a tax arbitrage while withdrawing retirement savings Changes to Government Employees Pension Rules when divorcing
Under the new 2 pot retirement system's law, you must formally notify your spouse's pension fund in writing about the divorce proceedings, along with providing proof. Once this notice is given, the pension fund is legally prohibited from permitting any withdrawals, loans, or guarantees without the consent of the non-member spouse.
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Family, Estate & notarial legal services
Info on Divorces & Pension Fund assets
Alongside the house being lived in; holdings in pension funds are often the biggest assets in a divorce.
NB: Under the new 2 pot system law, you must formally notify your spouse's pension fund in writing about the divorce proceedings, along with providing proof. Once this notice is given, the pension fund is legally prohibited from permitting any withdrawals, loans, or guarantees without the consent of the non-member spouse.
Proposed two pot retirement system and impact on divorce settlements:
Get your info directly from spouse's pension fund , not indirectly from your spouse.
Divorce and pension fund payouts
Undisclosed Pension Interest at divorce results in amendment to divorce order
Pension interest in the accrual calculation , and the related tax liability.
Living annuities & divorce - how to value and divide an asset you can't liquidate.
When the state pension fund refused to pay
Navy pension payout post-divorce
Unmarried couples & pensions
Divorce & pension funds discussion forum
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