Contact

News & Insights

Family Court rules on QROPS pension

The ruling by Mr Justice Mostyn supported the husband’s argument that divorcing partners are obliged to share only their UK-based pensions with former spouses. In contrast, said the judge, UK law could not extend to including QROPS pensions in divorce financial settlements.

The case sought to address whether the Family Court had the power to order the transfer, sharing or assignment of a pension in jurisdictions outside of the UK; in the end it decided that QROPS pensions fell outside the strictures provided by the Matrimonial Causes Act 1973.

The judge said that even if the overseas jurisdiction could enforce an order of the UK courts, the court actually had no real power to make such an order and to do so would conflict with the “presumption against extra-territoriality”. However, he further commented that if the money in the pension comes back into the UK, the wife would be able to make a claim on it; as such he decided not to dismiss Ms Goyal’s claim on her husband’s fund.

The ruling serves to affirm the existing law as it extends to QROPS pensions in relation to financial remedy orders in divorce cases.

However, it is important to remember that in some jurisdictions spouses may be able to make sharing applications in order to try and gain access to funds.

More information about QROPS pensions with Blacktower can be found here .

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

FCA and TPR Join Forces to Improve Outcomes

This month the two main pensions regulatory bodies, the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR), announced that they have joined forces to improve the prospects of retirees and pension savers. Previously, the two have worked together in an attempt to protect savers from pension scams.

The fact that the two regulators are thinking big by developing a strategy for the next five to ten years is good news as it gives some time for objectives to be fully understood and reached, and the published strategy will hopefully lead to greater numbers of savers having sufficient income once they reach retirement.

Initially, the two regulators oversaw a comprehensive review of the consumer pensions experience – particularly regarding how and why savers make the decisions they do. The published strategy now seeks to encourage pension providers to increase value for money, with an enforcement of standards and principles amongst the pension industry a key component of this aim.

Read More

Expats want clear plan

Houses of ParliamentBritish expats who are uncertain what they should do regarding their regular savings plans are hopefully reassured by Theresa May’s announcement that she wishes to secure the status of expats in the European Union at an early stage during the Brexit negotiations.

However, the Prime Minister has refused to divulge further details of the Government’s strategy for negotiating the UK’s formal exit from the EU, leaving expats without any further clarity regarding their future options – for example in respect of education fee planning and international pension planning – in relation to their expat regular savings.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: