Equiniti warns of prenup problems for pension schemes

Fri 07 Feb 2014

UK Pensions Schemes must prepare for increased popularity in prenups.

Previously prenups were not enforceable under UK law.  However, a draft bill to be published later this month suggests couples will be allowed to ring fence certain property or assets in the eventuality of a divorce. In 2010 the Supreme Court ruled that judges could take them into account, but only if certain conditions were met.

The draft legislation is expected to receive cross party political support, as it will save couples from the sums associated with legally contested divorces. Prenups are also expected to appeal to older people or those marrying a second time, as they will have more assets and pensions holdings at risk in the event of a contested divorce.

Says Keith Boughton, Director of Pension Services at Equiniti; “The new rules might save time in court, but we predict a surge in workloads for pension schemes and their administrators, as those in personal and company schemes and their lawyers request real time valuations on their holdings.”