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how are pensions divided up

  • mt123
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16 Jan 10 #176994 by mt123
Topic started by mt123
my partner is recently divorced but the Clean Break order is not in place yet,when discussing his pension his solicitor informed him that the total CETV is halved then divided by 4 to calculate how much his ex was entitled to,this figure was then offset against what he received from the house ,his ex signed the clean break order but they had to go to court as a formality because she wasnt represented by a solicitor,at the courts she was advised to seek legal advise because they feel she should be entitled to more than 3 times that ammount....at least £35000.....any thoughts on this or anybody had similar experience.

  • Peter@BDM
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17 Jan 10 #177256 by Peter@BDM
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His solicitor has fallen into the same trap as many others. The starting point is correct, that is the total value of all pensions (his and hers) is considered for redistribution and 50:50 is the normal starting point. To divide the difference by 2 again just because the pensions might be offset is a calculation with little validity. This so-called offsetting discount really depends on the circumstances of the individuals. It could be that a discount is appropriate, as suggested by his solicitor but it is equally possible that it would not be appropriate to discount (as her solicitor is suggesting). The discount should be objectively and professionally arrived at using a basis that both parties agree to follow, which will save on legal fees and anguish.

Peter.

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