Pensions can be a complicated issue during divorce settlements. Many people wonder if an ex-spouse can still make a claim on pension benefits if their former partner remarries. The short answer is yes, in some cases an ex-wife may still be able to claim pension rights from their ex-husband even if he remarries. However, the details depend on the type of pension and the specifics of any divorce financial settlement.
How Pension Rights are Handled in Divorce
During divorce proceedings, pension assets are considered part of the marital assets that are divided between spouses. This includes private, employer-provided, and state pensions. There are a few ways pension assets may be divided:
Pension Sharing Orders
A pension sharing order divides the pension fund into two separate pensions, one for each spouse. This splits the pension at the time of divorce so each spouse then has their own independent pension entitlement going forward.
Offsetting
Rather than splitting the pension, the total value may be offset against other assets like the house, investments, etc. so one spouse gets to keep the pension but the other gets a greater share of other assets.
Earmarking
An earmarking order does not divide the pension. It provides the ex-spouse a right to receive a portion of pension income or lump sum when the paying spouse retires.
Clean Break
A clean break settlement severs all financial ties between spouses. The pension holder would keep all their pension, and the ex-spouse receives other assets or a lump sum payment instead. A clean break aims to finalize things but pensions can still be disputed later if the settlement is unfair.
So in many cases, the ex-wife retains an entitlement to receive a portion of the ex-husband’s pension even after the divorce is finalized. The details will depend on the type of order used in the divorce settlement.
Does Remarrying Affect Ex’s Pension Entitlements?
In most cases, a pension holder remarrying does not affect the ex-spouse’s entitlement to pension income or benefits awarded during divorce. Here are some key considerations:
Pension Sharing Orders
If a pension sharing order was made, the ex-wife’s pension rights are completely independent of her ex-husband. Her shared portion of the pension is hers for life regardless of any change in circumstances.
Offsetting
Like pension sharing, offsetting gives the ex-wife her portion of the pension value upfront. The ex-husband keeping the pension is offset by awarding other assets to the ex-wife. Her entitlement is established and unchanged by remarriage.
Earmarking
Earmarking can be affected by remarriage in certain pension schemes. For most public sector schemes like NHS, civil service, teacher and local government pensions, earmarking orders remain valid and binding regardless of remarriage.
However, for some private pensions, remarriage may invalidate an earmarking order that provides benefits for an ex-spouse. Each scheme’s rules would need to be checked. If so, the ex-wife would need to return to court for the settlement to be reconsidered.
Clean Break
With a clean break, there is no ongoing pension entitlement for the ex-wife so remarriage is irrelevant. However, if the ex-wife later disputes the clean break settlement as unfair, she could still make a claim on the pension.
So in summary, remarriage does not automatically cancel obligations to share a pension with an ex-spouse. The ex-wife’s entitlement depends on the type of pension and divorce settlement.
When Can Pension Entitlements Be Contested After Divorce?
There are a few scenarios where an ex-spouse may be able to contest pension rights after a divorce and financial settlement have been concluded:
The Settlement Was Unfair
If one spouse failed to disclose pension assets or the settlement did not adequately account for the pension’s value, the ex-spouse can argue the settlement was unfair. Non-disclosure or misrepresentation of finances can allow a settlement to be challenged.
Changed Circumstances
If circumstances change substantially like one spouse becomes seriously ill or disabled and unable to work, the existing pension settlement may be disputed due to unfair hardship.
Pension Values Increase
If the pension significantly increases in value after the divorce, for instance due to promotions, higher salary or growth in investments, the ex-spouse may challenge the fairness of the original pension division.
Earmarking Invalidation
As mentioned, earmarking orders for some private pensions can be invalidated by the ex-spouse remarrying. The ex-spouse could then dispute the settlement seeking alternative pension provision.
Clean Break Disputes
An ex-spouse who gave up pension rights in return for a clean break settlement can contest the fairness at a later date. This often happens near retirement when the pension’s importance becomes clearer.
So normally entitlements after divorce can’t be arbitrarily challenged. But if there are justifiable grounds like unfairness or changed circumstances, successful claims may be possible in some cases.
How Are Pension Assets Divided Fairly On Divorce?
Dividing pension assets equitably is complex because the true value depends on uncertain future factors. But there are best practices family lawyers follow:
Full Disclosure
It is imperative that full details of all pension plans, values and entitlements are disclosed and shared. Non-disclosure leaves settlements open to challenge.
Forensic Accounting
Experts estimate the present cash equivalent value of pensions and likely future retirement income. This accounts for expected inflation, investment growth and lifespan variables.
Percentage Split
Typically pensions are divided according to the overall asset split. So if assets are divided 60/40, pensions are as well. Some factors like medical issues may warrant adjustments.
Consider Offset or Share
Offsetting or sharing pensions is usually fairer than earmarking or clean breaks. The latter tie the ex-spouse to the pension holder’s retirement choices which may disadvantage them.
Review Settlement
If circumstances change substantially post-divorce, unfairness that wouldn’t have been foreseeable initially may arise. In this case, revising the settlement maintains equity.
Can I Reduce My Ex-Wife’s Pension Entitlements?
The pension holder cannot unilaterally reduce an ex-spouse’s entitlements after divorce. Their rights are set out in the divorce financial order. There are very limited options to try to change this:
Appeal the Order
If the pension order seems unfair or disproportionate, an appeal may be possible. This must be done quickly and requires clear justification.
Request an Adjustment
If circumstances change substantially, like serious illness or job loss for the pension holder, they can request the order be adjusted. The ex-spouse must agree or a court must approve the change.
Seek a Court Variation
It is possible to apply to court to have a financial order varied. This requires demonstrating a substantial change of circumstances since the order was granted. Requests are not always successful.
Request a Reconsideration
If the ex-spouse remarries this may allow a pension sharing order to be reconsidered by a court in some cases. Again, not guaranteed to change.
Dispute a Clean Break
If a clean break was agreed to, the only recourse is disputing the fairness. Hard to overturn unless improper disclosure or very unfair.
So there are limited options. Seeking a mutual agreement with the ex-spouse directly is often best if circumstances justify a change. Unilateral action by the pension holder is unlikely to override an existing court order.
Conclusion
In summary, the central points to note are:
– Pension assets are frequently divided between spouses as part of divorce settlements
– How they are divided depends on the type of order – sharing, offsetting, earmarking etc.
– The ex-wife’s entitlement is normally secure even if their ex-husband remarries
– Pension orders can only be contested afterwards in certain specific unfairness situations
– The pension holder cannot arbitrarily reduce ex’s entitlements without agreement or court approval
– Experienced divorce lawyers are needed to ensure pensions are divided fairly.
So in most cases, remarriage does not affect an ex-wife’s rights to a share of the ex-husband’s pension as previously agreed. Their entitlements were fixed at the time of divorce and settlement. Changing these requires strong justification and legal approval. With pension values often high, a fair settlement is crucial for both parties’ long-term financial security and retirement income.