Warning Divorcee's: Ear Marking Pension Order © 1996-2001

If you were divorced in England and Wales between 1996 and 2001, and you took a share of your ex-spouses pension under the divorce settlement as an Earmarking Order, then you could find you are at risk of falling to the unintentional loophole which has opened up as a result of the recent pension reforms. Earmarking Orders are intended to provide the other party to a marriage with a share of the pension income derived from a pension accumulated during the course of the marriage. The loophole means that your former spouse at 55 years of age can draw the whole pension as a capital lump sum and not as an income, thereby depriving you of the pension income. There may be restrictions on withdrawal of the pension as cash if there is an Earmarking Order in place, but this will depend on the drafting of the original order be at the discretion of the pension provider. This leaves you as a former spouse in a vulnerable position. It may be possible that the original order can be varied to protect your position, but only if this takes place before the fund is withdrawn. As a result it is imperative that if an Earmarking Order was made in your favour, you obtain a copy of the order and seek advice from a family solicitor as soon as possible. Our family department offers a free initial half hour appointment where a member of our experienced team will be able to advise you on how this new reforms may affect you. Please call our Family Department with any enquires on 0114 266 6660 or email [email protected]