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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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Another Army Pension Question

  • penny10p
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05 Oct 12 #359516 by penny10p
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The situation is this. In an effort to avoid paying a fortune to solicitors we came to an agreement between ourselves about how the finances should be sorted. The agreement was that I would have a percentage of the pension (lets say 50% for easiness) as a pension share. He got a CETV and a pension forcast and then left the forces. This was nearly 2 years ago. In the meantime I applied for a divorce and we have the Decree Nisi and have submitted a Consent Order to the court ( see my other post). This has taken much longer than I expected due to house moves, forms being filled in wrongly etc. I suppose my question is, am I going to be worse off because of these delays? If it had all gone through quickly two years ago would my pension share be greater than it will now be? If there are further delays will my pension share continue to be affected (i.e reduced)? BTW we are both 53.

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05 Oct 12 #359518 by penny10p
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Just trying to think of another way to explain what I''m talking about! I cannot remember the actual figures so I am using fictious figure for easy of calculation. Suppose in 2010 he has a pension valuation of 500,000. He then leaves the forces and starts receiving an annual pension of 20,000. We agree that I should get 50% of his pension. Is my share worked out at 50% of the 20,000 per annum (adjusted for age that I can take it etc). Or is the 50% taken from the valuation which is now going to be significantly less because he has already had 2 years wrth of pension? Am I making any sense at all?!

  • MrsMathsisfun
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05 Oct 12 #359536 by MrsMathsisfun
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My understanding is that the pot was x amount when you spilt. Its has taken 2 years so far to sort out divorce and now your ex has since started to recieve pension.

Assuming he took the usual lump sum of y amount. The''pot'' would have been x - y.

Now the pension is in payment then there isnt a ''pot'' as such. Its now a agreement to pay your ex a certain amount each year until he dies.

How much a pension share would affect his current pension income and how much income you would get from your share is difficult to establish.

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07 Oct 12 #359729 by penny10p
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"Further, the amount of pension provided to you per £100 of pension asset transferred to you reduces over time the closer you get to age 60."
Quote from Ian. I am surprised at this. I would have thought that the older you get more pension you would get because there are fewer years left for the pension to be paid.

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07 Oct 12 #359730 by penny10p
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Mathsisfun, the forces pension scheme states quite clearly that if a pension is in payment when a pension sharing order is made then the pension reduces immediately by the agreed percentge. So we do know exactly what my ex will get. You are right, however, that we have no idea what I will get. I am happy to take the risk. I don''t think it is worth the expense of an actuary''s report and the cost of arguing about a few percentage points through solicitors. I hope we can persuade the judge to agree the Consent Order.

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07 Oct 12 #359737 by MrsMathsisfun
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Is the issue that your ex hasnt had legal advise?

I had a similar issue with my divorce, my ex wrote to court stating he understood what he was agreeing too and still wanted the Consent Order to go ahead. The judge then agreed.

Guess your hearing will be similar, The ex says he knows what going to happen, you say you do and job done.

  • ian conlon actuary
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08 Oct 12 #359777 by ian conlon actuary
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Just to add a few comments. I agree with Dukey that if the delay was a matter of months then the impact is minimal.
The main reason for the change in the impact of applying say a 50% share is your husband taking the cash sum. Was it ever likely that a pension share would have been implmented before this occurred? did you get a proportion of the cash sum he received?
I confirm that the amount of pension you get per £1000 of CETV reduces the closer you get to age 60, the reason for this is that, as payments are assumed to start from age 60, the payments are more immediate the older you get. Once you''re over age 60, the amount of pension per £1000 of CETV increases.
Ian

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