Hold Ups in Divorces Due to Pension Valuations Not Being Available.

The BBC have recently reported on how people are having to delay their divorces due to the hold ups in obtaining the Cash Equivalent Values or Cash Equivalent Transfer Values (commonly referred to as a CEV or CETV) in respect of their pensions (in particular, teacher pensions).

Why are pension valuations needed, and what are causing the delays?

Pensions are often one of the most valuable matrimonial assets held by parties. Their value is normally only exceeded by the value of the equity in the matrimonial home and in some cases, the pension value actually exceeds the same.

The courts will not make any agreed order for a financial settlement arising out of a person’s divorce without evidence that the parties have:

a) disclosed details of their pensions (including the CEVs/CETVs); and,

b) have considered the same when reaching an agreement.

Indeed, the court requires the pension CEV/CETV’s figures when filing a D81 form (a form which must be completed and signed by parties when filing an agreed order for the court’s consideration).

Valuations of public sector pensions have become more complex after the court’s decision in the case of McCloud, which related to discrimination against younger public sector pension scheme members. This is causing a large backlog in processing requests for CEV/CETV, hence the delays. Without these pension valuations, parties cannot obtain an agreed order in respect of financial settlements.

What can you do to avoid any delay? Get your ducks in a row ASAP!

The best course of action is to obtain legal advice, and to do so sooner rather than later.

We are seeing an increase of litigants in person delaying seeking legal advice until they have agreed a final settlement. Although there is no bar in trying to resolve matters by agreement (which is to be encouraged), the delay in seeking legal advice can often cause numerous issues, many of which could have been avoided.

One of those such issues is that parties wishing to implement the terms of an agreement, but who are sometimes advised to hold off doing so until they have a financial order. Financial orders, made by agreement outside of contested financial remedy proceedings (known as a consent order), cannot be considered and made by the court if:

1. A conditional order has not been made within divorce proceedings; or,
2. The parties are unable to complete a D81 Form as they do not have all the pension CEV/CETVs.

Bringing lawyers into the proceedings does not need to be a hostile step, and doesn’t automatically result in unnecessary acrimony between parties. In fact, in can have quite the opposite effect.

We at Lanyon Bowdler are committed to assisting our clients in the best way possible, which often means we resolve matters amicably and promptly (as demonstrated by the numerous reviews on ReviewSolicitors). Furthermore, we have collaboratively trained lawyers, who can also be instructed where the focus is on trying to resolve matters outside of contested court proceedings by agreement.

We recommend that you apply for your pension valuations as soon as practicable (do not wait until you have an agreed settlement).

To endeavour to negotiate a settlement without full knowledge of your respective pension valuations is akin to doing so blind folded, and we strongly advise against such action.

You can obtain the necessary pension CEV/CETVs by simply sending a document (once completed) known as a “Form P” to your pension providers.