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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.

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

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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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Teachers Pension CETV

  • Knockerefc
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04 Aug 18 #503170 by Knockerefc
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What was the final outcome of the pension debate ? I'm interested because my stbx is also a teacher although we have only been married for 8 years

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25 May 19 #507731 by Knockerefc
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Hi mate.
An update from me. I've made no progress with the divorce to be honest. My stbx wanted the pensions kept out of the divorce and wanted to give me minimum equity on the house. I've told my solicitor who just laughed and said she was being ridiculous. I've not heard anything from her for a month so I think she is in the process of hiding or protecting things before contacting me again, so we will see.
How are you getting on?

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03 Feb 20 #511282 by IvorB
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Hi

I'm new to the board but your predicament sounds familiar.

My STBX has a teachers pension with a CETV of just £67,000, yet money advice service website suggests to buy an annuity replacing the benefits would cost £160,000 today. As my own DC pot is worth about £300k, so clearly the amount I'd have to give her would vary between £116k and £70k depending on whose valuation is accepted. And of course she 'doesn't believe' the MPS (gvot backed) valuation.

A pensions actuary would cost (me) around £1500...

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05 Feb 20 #511298 by ThereWillBeLight
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Hi Ivor B,

Do you have a link or instructions on how you got a quote from the money advise service website? I've checked and can't seem to find how to find that quote for an annuity replacing figure.

Thanks

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05 Feb 20 #511299 by IvorB
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Hi

I basically went to the annuity calculator and kept increasing my supposed pot until it predicted the outcome required.

www.moneyadviceservice.org.uk/en/tools/annuities

If you enter £67,000 you'll get an annual income, dependent on the options you choose, of around £1500.

The STBX's statement says she'll get nearer £4,000 a year (all figures in today's money) so clearly I was going to need around 2½ times £67k to get that as an annuity.

It's not an exact science, but it proves the CETV wildly undervalues the pension and associated benefits.

But the CETV is not actually designed to be used in divorce cases. It's a transfer-out value for people that want to be in charge of their own pension and not rely on the govt.

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06 Feb 20 #511323 by ThereWillBeLight
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Thanks IvorB!!

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06 Feb 20 #511324 by IvorB
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You should also have a read of this...

"For a final salary pension or public service scheme the assumption that the member terminates membership of the pension scheme by way of leaving service will distort the valuation of benefits that could be apportioned as the spouses lost rights on divorce or nullity of marriage.

It will be necessary for those divorce cases where the CETV from the scheme administrator is not appropriate to consider other methods of valuing retirement benefits to produce a suitably adjusted CETV. This should be done irrespective of whether the division of the matrimonial assets will use offsetting as a settlement, earmarking order or pension sharing order."


www.sharingpensions.co.uk/valuations.htm

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