Pensions and Divorce/Dissolution of a Civil Partnership

You and your partner will need to consider how to treat your pension rights as part of any divorce/dissolution settlement.

You may be asked to provide your solicitor or representative with an estimate of what is called the ‘cash equivalent value (CEV)’ of your pension rights.  This may also be described as a ‘fund value’ or a ‘transfer value’.  They are the same thing, and represent the value of your Leicestershire County Council Pension Fund.

The Court will take this value into account in your settlement.  

You can request these details by downloading this important leaflet and form, and return the completed form to the Pension Section.

If you have any Additional Voluntary Contributions (AVCs), a current fund value will also be quoted for you, so there is no need to approach Prudential.

However if you have other pension rights, you will need to approach each scheme separately to request a value of each fund.

To download a printable copy of the Divorce Quotation request form (Word Document, 80KB) please click here.

The court may use the CEV to offset the value of your pension against other assets in the divorce or dissolution settlement. Alternatively it may issue a Pension Sharing Order or an Earmarking Order against your pension or lump sum. A Pension Sharing Order is the court’s instruction to us to give a percentage of the member’s CEV to the former partner as a stand alone pension entitlement. This will also reduce the member’s benefits up to the date of the order by the same percentage. An Earmarking Order will instruct us to make a cash payment from your pension or lump sum to your former partner.

If there are any charges which apply, a list of charges will be supplied at the start of the process.

Under the LGPS, if you get divorced or a civil partnership is dissolved, you may wish to note that:

Your ex-wife, ex-husband or ex-civil partner will cease to be entitled to a widow’s, widower’s or civil partner’s pension should pre-decease them.

Any children’s pension payable in the event of your death will not be affected by your divorce or dissolution.

It is recommended that you complete a new Death Grant Expression of Wish form (PDF, 178KB) upon your change in circumstances, so that the Pension Section is clear about your intentions.  Please note however that the Court may, however, issue an Earmarking Order stating that all or part of any lump sum death grant is payable to your ex-spouse or civil partner, which must be respected.