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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


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Payment of pensions

  • Birdlegs
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14 Jun 12 #336754 by Birdlegs
Topic started by Birdlegs
Think my stbx is holding things up until he reached 60 in April next year when he can take his pensions. Can anyone advise what will happen if he takes his cash free lump sum and his pension before Separation Agreement is finalised. What will happen to my my entitlement of 50 percent.

Bird

  • hadenoughnow
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14 Jun 12 #336764 by hadenoughnow
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Birdlegs

I am not 100% sure that this would apply in Scotland ... but I can tell you that in E & W the closer it gets to the pension being taken, the more likely it is that it may be treated as lump sum + income.

In my case (a few months before taking pension) the lump sum went into the marital pot and the residue was classed as his income and not big enough to share (although he did have to pay CM). It meant there was enough cash to house us both.

AFAIK it is perfectly possible for the lump sum to be taken (and added to the cash pot) while the residue is subject to a pension share although I don''t think another lump sum could be taken from it. Bear in mind though, that depending on the scheme, you may have to buy a private pension so may need more than 50% to equalise income in retirement - again am not sure how that works in SCotland - do they mean 50:50 CETV or 50:50 retirement income??

A lot would depend on what we are talking about in terms of cash. Do you have a: a CETV and b: a statement of benefits on retirement? This will give details of the maximum lump sum and annual income.

This may also be a case where you could get a freezing order to stop him spending the lump sum but again I do not know if this would apply in Scottish Law.

Hadenoughnow

  • Birdlegs
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14 Jun 12 #336767 by Birdlegs
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CETV given back in 2010 was 392,000..forecast pension £90,000 lump sum and £17250 pension.

Thanks

  • mumof5
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14 Jun 12 #336792 by mumof5
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Birdlegs

Im sure this still applies today but may be wrong

I was only entitled to half my exs pension fron the date we were married until the date of seperation, unlike English divorce laws,so it may turn out that you will not be given 50%.

Basically the pension split i got was 50% of the amount from marriage to seperation which meant overall i got a 34.1% of my exs pension

  • NoWhereToTurnl
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14 Jun 12 #336794 by NoWhereToTurnl
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I am in England, how do I go about getting a freezing order?

Thank you for any help

  • Birdlegs
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14 Jun 12 #336801 by Birdlegs
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Yes pension figures quoted were all accrued during marriage.

Bird

  • ian conlon actuary
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15 Jun 12 #336859 by ian conlon actuary
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Going back to the original question, firstly in Scotland it tends to be the value of the pension benefits as at the date of separation which gets taken into account. As there tends to not be any form of updating for the period from separation to settlement, as CETVs typically increase over time this is to the disadvantage of the spouse.
As to what hppens to the CETV on retirement, it will reduce as a result of cash taken, the amount by which it reduces is quite often significantly more than the actual amount of cash taken.
Ian

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