Scheme information

Divorce

If you’re a member of the Scheme and divorce, the accumulated retirement income and other benefits you have built up may be dealt with in one of three ways. A divorce court may:

  1. Offset them against other assets in a financial settlement. The total value of your pension benefits and other benefits is taken into account alongside all the assets such as your house, car and other property. Your benefits are not therefore divided, but are offset against other assets.

  2. Earmark part of your accumulated retirement income and other benefits when payable. In this case, a proportion of your pension benefits (on retirement) or lump sum (on retirement or death) is made the subject of an attachment order and earmarked for payment to your ex-spouse when you retire or die.

  3. Share your pension benefits and other benefits. This method sets out to achieve a ‘clean break’ of retirement benefit rights whether they are still being built, are deferred or are in payment. Your benefits in the Scheme are valued when a sharing order is made and your full entitlement is divided between you and your ex-spouse as set out in the order. The ex-spouse’s entitlement is then transferred into his or her occupational pension scheme or a personal or stakeholder pension, or another suitable type of insurance contract of the ex-spouse’s choice. Where the ex-spouse makes no transfer election, the Trustee will transfer the entitlement to an external arrangement of its choice. If you need more details on divorce, you can request our information pack from AA Pensions Team. Also, please do not forget to complete a new Expression of Wish form.