Disappointed

If you were going in to negotiate your share of a final salary pension Divorce IFA what would your information checklist cover?
Would you negotiate divorce deals on final salary pensions with only the scheme's own CETV?
Does Form P tell you all you need to know?

When considering a final salary scheme in the context of a divorce, I would approach matters as follows:

- Review the CETV in line with what I know about the scheme and the benefits on offer - i.e. does it represent fair value (actuary report needed). If it does not, explain why not and ensure that this is understood and brought into the wider negotiations.
- Review the scheme itself - is it underfunded? What about future discretionary increases?
- Review the options available on divorce as this will inevitably have a major impact on what actually happens.
- Educate the client on these options and confirm what the potential outcomes of one route over another will be.
- Find out the client's attitude to risk
- Assess the client's objectives and personal circumstances.
- Advise on the most suitable course of action.

I would suggest that negotiating a divorce settlement based on a CETV alone is not a good strategy given the potential for the CETV to be seriously undervalued.

Of course, this undervalue only becomes a negotiation point and this is where skill (sometimes compromise) is needed to arrive at a beneficial outcome. The value of the pension will always remain as the CETV despite what the actuary confirms in his report.

Form P does not give nearly enough information for me to advise but it is a good starting point.

I hope this goes some way to answering your questions.

Regards

Phil

Please note: Although I am a Resolution Accredited Independent Financial Adviser my comments are given here as general guidance ­­base­­ d on the (often limited) information available and does not constitute financial advice. They should not be seen as a substitute for detailed financial and legal advice.

ummmm complicated, thank you for all your replies. Still not sure if was worth the £1,000 bill
I'll look at it some more, I'm just getting myself stressed about it becuase I don't understand.

Hi,

Please don't get stressed about this.

If you need any further assistance on understanding what the CETV means, please post again.

I would suggest that you start to think about your end game. What I mean is what do you want to get out of your settlement and to achieve this what are you / are you not prepared to compromise on.

Worrying about the CETV is only part of the picture. You need to understand what options are on offer from the ceding scheme to deal with your part, as ultimately, this is what you will be left with to provide your income in retirement.

I hope that helps. If you need anything more, please post or send me a PM.

Regards

Phil

Please note: Although I am a Resolution Accredited Independent Financial Adviser my comments are given here as general guidance ­­­base­­­ d on the (often limited) information available and does not constitute financial advice. They should not be seen as a substitute for detailed financial and legal advice.

It won't seem like it to you just now ccb1 but with pensions knowing that you don't know is healthy - my situation before sharing in 2006 was that I didn't know my solicitor didn't know.Things have moved on massively - so much more user friendly info.
Just keep on asking.Every question you ask on Wikivorce helps lots of others.

Hi,

Just wondering where you were with this one. Have you managed to understand the nuances of the actuary's report.

Please post again for further assistance.


Regards

Phil

Please note: Although I am a Resolution Accredited Independent Financial Adviser my comments are given here as general guidance ­­­­base­­­­d on the (often limited) information available and does not constitute financial advice. They should not be seen as a substitute for detailed financial and legal advice.