Proeperty collateral v's pension

I have been posed the question of whether i would be prepared to hand over the house including the collateral/endownment to save a split/claim on my pension...the pension is a non contributary pension and will be worth a lot when i retire, this will also leave me in a position to get another mortgage with a new partner - my thoughts are...what if i die before i retire? Any thoughts?? Thanks

you would need to provide more information - respective ages, values of the various assets etc, in order for us to be able to advise...

Hi,

It is difficult to be certain whether this approach would have merits without knowing the values.

An offset calculation based on the house value and the cash equivalent transfer value of your pension would aid negotiations.

However, to answer your question regarding death (and I have assumed that you are still in the service of the company providing the pension) there would often (but not always) be a lump sum paid (multiples of salary is common) and potentially dependant's pensions.

It is important therefore to ensure that the trustees of the scheme are aware of your dependants. This can be updated by a nomination of beneficiary form. In addition, you should check what benefits would be paid on death and to whom.

As you go through divorce the status of your spouse and dependants will change and therefore any claim on the pension asset on death may change also.

Regards

Phil

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.