The laws in Gibraltar allow for pension funds to be taken into account in divorce settlements. There are two types of orders the Court may issue:
Pension Sharing Order
A pension sharing order has the effect of splitting the Members Account by a specified percentage. The Members Account is then reduced by that percentage and the ex-spouse/civil partner is awarded a “pension credit” which can be transferred into his/her own pension arrangement.
Where the Members Account is spread over more than one arrangement within the scheme, the percentage would apply equally to each arrangement.
Where the Member is a part of more than one scheme, the percentage may be different for each scheme.
Pension Attachment Order
Pension Attachment is the mechanism by which an ex-spouse can receive a portion of the Member’s pension or lump-sum benefits once these come into payment.
The main features of pension attachment orders are:
- Pension rights remain property of the Member
- Diversion of benefit(s) to the ex-spouse takes place only from the time that the benefit(s) to the Member comes into payment.
- Can attach:
- Member’s pension
- Retirement lump sum
- Death in Service lump sum
- Can’t attach spouse’s pension
- A Pension Attachment Order must be expressed as % of the benefits payable
- A Pension Attachment Order takes into account pension benefits accrued after the date of divorce