The Department for Work & Pensions (DWP) has updated the pensions form which needs to completed by each party in the event of divorce or dissolution.
The form enables the Family Court to decide if your or your partner’s State Pension should be shared.
This is because the additional State Pension – the part which is based on your lifetime National Insurance Contributions – is deemed as a financial asset.
The basic State Pension is protected, but you can use your partner’s National Insurance record to top-up your own pension.
If you reach State Pension age before 6 April 2016, State Pension top up is an amount you can get as well as your basic State Pension. It is based on voluntary contributions made between 12 October 2015 and 5 April 2017 specifically for State Pension top up.
For customers with a State Pension age on or after 6 April 2016, the portion of State Pension available for sharing will be the protected payment – the amount that is payable above the standard weekly rate of the new State Pension.
The DWP will use your additional State Pension and any State Pension top up to calculate what your shareable pension is worth. This is called a Cash Equivalent Value (CEV).
If your CEV is more than 12 months old at the date of the court hearing, you must apply for a new CEV, as it may change.
The form can be found here.