Executive Partner Sally Powell navigates complex cross-border pension issues without repeated court proceedings.
For context:
Our client, referred to here as Ms X, is a British national living in New England, USA. She and her husband, also a British national, had relocated to the US several years earlier but had retained strong connections to England.
The couple divorced in New England in December 2022. As part of the divorce, they entered into a separation agreement approved by the US court. That agreement dealt with all marital assets, including two UK-based pensions held with Credit Suisse and Lloyds. Under the New England agreement, Ms X was entitled to receive a share of those English pensions.
Ms X instructed Sally Powell, Executive Partner in Tees’ Family Law team, to help her implement the pension division in England.
What happened next:
Although the pension division had been properly agreed and approved by the New England court, Ms X was unaware that UK pension administrators will not act on pension sharing orders made overseas. This crucial point was also unknown to the US court at the time the agreement was approved.
As a result, Ms X found herself unable to access the pension benefits she had been awarded, despite having a final divorce settlement in place. Rectifying the position through further US court proceedings would have been time-consuming, costly and stressful for both parties.
Our approach
Drawing on her decades of experience in complex family law and international divorce matters, Sally identified an alternative and more effective solution.
Rather than reopening proceedings in the US or relying on the usual matrimonial legislation, Sally advised that an application could be made to the English court under Part III of the Matrimonial and Family Proceedings Act 1984. This would allow the English court to make an order dealing solely with the UK pensions.
Crucially, although resident in the US, Ms X retained her domicile of origin in England. This provided the necessary jurisdictional link for the English court to intervene.
Sally also advised that the application could be made by agreement with Ms X’s former husband and dealt with entirely on paper. This avoided the need for either party to attend court again, in England or the US, which was a key priority for both.
The impact so far:
The proposed approach enabled an English court order to be obtained in respect of the UK pensions alone. This ensured that the pension administrators were legally bound to implement the pension sharing arrangements, allowing Ms X to receive the pension benefits she was entitled to under the original divorce settlement.
The matter was resolved efficiently, with minimal disruption, and without the need for multiple court hearings across different jurisdictions.
Giving you the full picture
This case highlights Tees’ expertise in international divorce and complex pension arrangements, and our ability to find clear, pragmatic solutions where overseas court orders do not translate smoothly into the English legal system. If you need support for a similar issue, do not hesitate to contact us.
