Firestyle Magazine: Issue 1 - Autumn 2015

FAMILY LAW
The Family Law Company by Hartnell Chanot has been serving
firefighters and their families for over 20 years helping them
to resolve their marital disputes in a non-confrontational way.
Rachel Buckley, Director and Head of the Divorce and Finance
team explains how pensions and divorce work.
One of the main concerns for firefighters is what will happen to their
pension on divorce. They have worked hard, in dangerous and stressful
situations to build up this hugely valuable asset and understandably
want to hold on it to it in the event of a relationship breakdown.
How will the finances
be settled?
Settling the financial matters
as a result of a marriage
breakdown involves a 2 stage
process. The first is information
gathering – what assets do you
and your spouse have and
how much are they worth?
How do I get my
pension valued?
You can obtain the value of
your pension by asking the
pension department for the
“CETV” which stands for Cash
Equivalent Transfer Value.
This is the amount you would
need to purchase a pension
which gives the same benefits
on the open market. This
can be a figure running into
several hundreds of thousands
– sometimes its worth more
than the matrimonial home.
Frequently, this CETV will
under value the benefits and
therefore an actuary may
have to be appointed to
give a true value. It is very
important that the actuary is
asked the right questions as this
can make a difference as to
the contents of the report and
the recommendations made.
It is really important to get
specialist legal advice here.
What factors are taken into account when
dividing our assets?
The second stage is how should the assets be divided between you
and your spouse. The courts will try to reach a conclusion as to what
is fair using a number of factors known as “Section 25 factors”. This is
because the factors are contained in Section 25 of the Matrimonial
Causes Act 1973. These factors are as follows:
1. Income and earning capacity, property and other financial
resources which each spouse has or is likely to have in the foreseeable
future including, in the case of earning capacity, any increase in that
capacity which it would in the opinion of the Court be reasonable to
expect the person to take steps to acquire.
2. The financial needs, obligations and responsibilities, which each
spouse has or is likely to have in the foreseeable future. Needs are an
important aspect. The principle is that each party and the children
should have enough to meet their needs assessed at a standard similar
to that enjoyed during the marriage.
3. The standard of living enjoyed by the family before the breakdown
of the marriage.
4. The ages of each spouse and the duration of the marriage.
5. Any physical or mental disability of each spouse.
6. The contributions which each spouse has made or is likely to make
in the future to the welfare of the family including any contribution by
looking after the home or caring for the family.
7. The conduct of each spouse if that conduct is such that it would
be in the opinion of the Court inequitable to disregard. This has to be
very serious conduct, for example, serious financial misconduct, severe
violence or sexual abuse. The fact that you or your spouse may have
pursued adulterous relationships will not count as conduct and has no
relevance to the issue of finances.
8. The value to each spouse of any benefit which one spouse
because of the divorce would lose. This usually applies to pension
provision which includes Additional State Pension.
However, the first consideration, before looking at any of the above
factors, will be the welfare of the children. It is not to be seen as the
most important factor but it is the first factor any Court will look at.
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