When a couple gets divorced, they often have to divide their assets, including their pensions. A pension sharing order is a court order that divides a pension between the two parties. This is done to ensure that both parties are able to maintain a similar standard of living after the divorce. However, what happens to a pension sharing order after the death of one spouse?
Understanding the Legal Process
A pension sharing order is a legally binding agreement between the two parties. It is made by the court as part of the divorce settlement, and it is based on the financial situation of both parties at the time of the divorce. However, it can be varied or revoked by the court if the circumstances of either party have changed. If you are facing such a situation, it is best to speak with a Divorce Lawyer Sydney, who can provide you with guidance and support throughout the process.
After the Death of the Spouse:
What happens to the Pension Sharing Order?
When one spouse dies, the pension sharing order will still be in effect, but it may be varied or revoked if the circumstances of the surviving spouse have changed. This can happen if the surviving spouse has remarried, or if they have a change in their financial situation. In this case, the surviving spouse may apply to the court to have the pension sharing order varied or revoked.
When the pension sharing order is varied, the court will take into account the new financial situation of the surviving spouse, and will make a new order that is fair to both parties. This may mean that the surviving spouse will receive a larger share of the pension, or that the pension will be divided in a different way.
When the pension sharing order is revoked, the surviving spouse will no longer be entitled to a share of the pension, and the pension will be paid to the beneficiaries of the deceased spouse’s will. However, the court will consider the needs of the surviving spouse and any dependents before making a decision.
Consequences
When the pension sharing order is revoked, the consequences can be significant. The surviving spouse will lose their entitlement to a share of the pension, which may affect their standard of living. They may also lose any other benefits that were included in the pension sharing order, such as life insurance or death in service benefits.
However, the court will take into account the needs of the surviving spouse and any dependents before making a decision. If the court finds that the surviving spouse is in financial hardship, they may make an order for the pension to be paid to the surviving spouse in instalments, rather than revoking the order completely.
A pension sharing order can be varied or revoked after the death of one spouse if the circumstances of the surviving spouse have changed. The court will consider the needs of the surviving spouse and any dependents before making a decision. It is important to note that revoking the pension sharing order can have significant consequences for the surviving spouse and their standard of living.
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