Teacher’s Pensions and CETV Delays: A Barrier to Fair Divorce Settlements

A divorce can be stressful enough under any circumstances but for teachers across the UK, the process has become even more complicated.

In an article from the BBC, readers learned that the Department for Education has been struggling to meet demand regarding the Teachers' Pension Scheme. Requiring specialist experts to carry out the complex calculations to provide teachers with a Cash Equivalent Transfer Value (CETV), the department has hit a backlog.

For teachers seeking a divorce, the struggle to secure a CETV prevents them progressing with proceedings, causing stress, frustration and struggle.

These delays will cause all sorts of issues for those affected. In addition to mental and emotional pain, couples unable to legally separate run the risk of incurring additional mortgage or rent costs and excessive legal fees as they wait for the CETV calculations to become available.

What are CETVs?

CETV’s are an important part of financial disclosure to ensure transparency between divorcing couples during financial negotiations to reach a financial settlement as they provide the capitalised value of pension benefits. Without it, a pension expert or lawyers cannot advise on a ‘fair’ division of the pension pot.

Divorcing couples are advised by lawyers that achieving a clean break financial order is in their best interests as it ensures that the other party cannot bring a financial claim in life or in death following a legally binding financial order being made by the court during the divorce process.  To get to this point, financial disclosure is often key. Without clarity on the values of pensions clients are often likely to reach a stalemate with lawyers advising that it would not be ‘fair’ or appropriate to move forward beyond this point.

To get a cash equivalent transfer value (CETV), individuals can request this from their pension provider or scheme administrator. Individuals may need to provide additional information to complete the process.

Can I continue my divorce without a financial order?

Although separating couples can divorce without a financial order, their respective lawyers are likely to advise them in the strongest possible terms that this would not be in their best interests.  They would be left in a financially vulnerable position with the other party potentially able to bring a financial claim even after the marriage has been dissolved.

How can TSP’s Family Team help you?

Managing the finances in divorce proceedings can be extremely complex depending on the circumstances. Our lawyers can provide advice on this multifaceted topic and guide you through the process. We are here to listen, advocate, and guide you towards the best possible outcome. As divorce specialists we can provide you with advice, information, reassurance, support and guidance.

If you find yourself in this position or know someone who has been affected, please reach out to the family team at TSP who will be able to help. Every case is different depending on the facts. We will discuss your case with you in detail and create a plan to progress your case forward.