Chahil suggests advisers develop an understanding around the more emotional side of divorce.
She said: “Specialists like myself do a bit more hand holding, we also have to educate our clients: for example clients will panic at the cost of pension sharing reports which can cost thousands of pounds.
“But they could be missing out on thousands of pounds when they retire and we need to really insist they consider the long-term cost of not taking the pension into account when they are looking at family assets.”
Chahil said there is a misconception that splitting the pension means the divorcee client has to keep in contact with, and remain financially connected to their ex.
“This isn’t the case if they go for a pension splitting rather than an attachment order.”
Chahil recommends advisers use resources including Advice Now and the Resolution website.
“Both these organisations offer free resources and information, which can be invaluable in helping clients through a difficult time in their lives.”
Looking after
Karen Dovaston, a solicitor and chair of the Law Society’s family law committee, recommends advisers make all clients aware that pensions can be shared on divorce, as part of a general pensions chat.
She said: “The more education around pensions, the better. Time and time again I come up against clients who just feel a pension is too complicated to bother with when they are getting divorced.”
Dovaston added: “If an adviser has a client who is getting divorced have an awareness of where their ex might have been employed: watch out for the blue light/government backed/old minimum guaranteed pension plans, these are worth a lot more.”
“Also consider your client’s locality, for example Southend in the 1970s and 1980s was a big banking town so their ex may have amassed a large pension during those years.
“It’s regional too, if you work near Salisbury, then it may be military pensions or in Dagenham the old Ford pensions scheme, and so on.”
Samantha Downes is a freelance financial journalist
