SSAS Pension: What Happens to a SSAS If You Get Divorced?

As you might expect, we do get asked this question from time to time. Many people think that by putting money into a SSAS, or any pension in fact, their money is protected from divorce splits and proceeds. However, unfortunately this is not the case.

How SSAS Funds are Split in Divorce Proceedings

When working out the value of an individual’s assets and dividing those assets in a divorce case, the courts will usually take into account the value that each Member getting divorced has in their SSAS or other pensions.

Please note: this does not affect other Members who might be in the SSAS. We would only be advising lawyers or the courts of the amount that is attributable to each Member getting divorced. So, there is no cross-contamination between other Members if it is a multi-Member SSAS.

Watch: Do All Members Have an Equal Share of a SSAS Fund? 

Why You Should Update Your Letter of Wishes 

If you get divorced, you should remember to change your Letter of Wishes because you may not want to pass the value of your residual pension fund onto your ex-spouse. Instead, you may want to redirect it another way. 

Similarly, if you get remarried, you will want to change the Letter of Wishes to make sure that your new spouse becomes the beneficiary of your pension benefits in the event of your death.

A Reminder to SSAS Clients and Future Members: if you get divorced, please remember to change your Will because it could become invalid.

Our Team Can Help

If you are going through a divorce and you would like SSAS support, please book a call with us. Our SSAS practitioner team can support you in the process of dividing up the pension fund and the assets within the SSAS accurately. Speak with us today. A member of our SSAS provider team will be able to assist you.

For more information about SSAS pensions, divorce, and how a SSAS can be used as an intergenerational wealth fund, please visit our SSAS Video Hub.