Pension Sharing

Simon

I think the complication here is that there is one pension not in payment and several including a FS one that are. We do not know the size of the income stream or the widow's benefit or the benefits from the pension not in payment. If the income stream is not especially large then there may be no merit in reducing it through pension sharing/attachment/earmarking.

It should be a relatively simple matter to look at the benefits from the pensions - ie the current income level (and widow's pension) and work out a way to deal with the situation in a way that works most effectively for all concerned. Depending on the questions the actuary is asked, I am sure this should form part of the report - it is more than a simple "real" valuation of the whole pension pot as a capital asset.

The question of what has happened to any lump sums that have already been taken is also important - if the equity has been increased by the lump sums then part of the pension is already in the assets pot ...


Hadenoughnow

Hi,

I think we are all in agreement that his pensions are in the pot. Future accrual is not that relevant in my opinion as the exercise is about agreeing the split of pensions accrued to date.

As Simon points out it is very important that the right valuation method is used on each pension. I loose count of the number of pensions in payment I have seen where a CETV is used.

However, given the values of the pensions I believe that an actuarial report will definitely be a good idea. Plus the judge has asked for it.

As Hadenoughnow points out some of the pensions being in payment adds complexities but a decent actuary will be able to work through these points/issues.

The question now is how to instruct the actuary properly and is your husband willing to agree to a joint instruction of the actuary?

Regards

Phil

The Divorce IFA

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.

Thank you. Yes we are coping ok, appreciate you asking. My son has just finished his GCSE's so not great timing for him. He is aware of basics but does not know any detail, I am trying to protect him as much as possible. I just hope that justice will prevail. You are so right with 'badly advised' my husbands legal fees are huge compared to mine. I am now self representing as the other sides questions following form E were six and half pages! Including asking for a copy of my CV!! I have responded to this and to further questions. I've not had a response to original questions. Court Directions stated we had to have house valued by 23rd June. His solicitor has ignored my letter regarding this. We also have to have requested Pension Analysis by 30th June again solicitor has ignored my letter. We have to have answered questions by 30th June and again I have heard nothing. Appreciate 2 days to go but do not anticipate hearing anything. I have heard this morning that FDR is set for 6th September. I am very tempted to do this on my own as well as I am convinced will go to final hearing and need to save money for that. Sorry for the rant!!!!
Hope you and your children are OK now.

I think it is difficult for you to onsider his offer until you have the pensions information which the report will give you.

As others have said, while the age difference does mean that you have some capacity to improve your position, however, that is limited by your current and future earning capacity and the amounts which you might be able to afford to pay into a pension - On those figures, you'd need to pay at least £1,000 a month into a pension to have any hope of building up a £300,000 pension fund by the time you reach 65 (quite possibly more, to acheive a similar level of income to the one he will have!) It may be worth looking at what you will have by way of income and outgoignsd to see what you may be able to afford to pay into a pensuion. Also, don't forget to get a state pension forecast, and make sure the actuary is asked to take state pensions into consideration. At what age will you actually be able to start claiming your state pension? Are you going to be entitled to a full state pension?

xyz

Well done for protecting your son .. I really hope this does not affect his GCSEs. Presumably the school is aware of what is going on?

Ignoring your letters is very rude - and not going to impress the judge! Did the judge at FDA agree to the list of questions from the other side? I am afraid this all sounds very familiar - my ex's questionnaire was a similar length ... and the letters from his solicitor about my earning potential were plain nasty. Despite being a professional, retraining to teach my subject and clearly having a plan to support my kids (as he wasn't going to) they implied I wasn't doing my bit and suggested I could be a shop assistant ... no disrespect to shop assistants but why would I do that when I can earn in a day what they may get in a three?

My advice to you would be to keep sending a standard letter about the outstanding matters - once every few days. If they still ignore you then I suggest you send them a draft joint instructions letter for each expert with a deadline saying if they do not respond and agree to pay half costs, you will apply to the court to compel them .. and costs will be claimed against him.

If you think this will go to FH - and I am afraid it sounds like it will - and you can resist pressure to settle at FDR - which can be horrid - then it is wise to save any money you have for the costs of FH. Incidentally you can now instruct barristers directly in family law (new!) so this may be something you want to explore.

Hadenoughnow

For the Final Salary pension - will the scheme's own actuary have produced a "CEB" in response to a request for a valuation - as did the 2 pension schemes in Martin-Dye even though everyone called them CETVs.
What's the difference between a CEB and a CETV?

Just working on a case where the pension is in payment and to be fair the administrators spotted that it needed a cash equivalent of benefit valuation - CEB and not a cash equivalent transfer value - CETV. Wonders never cease.

Really it is just the two diffent valuation methods used by the scheme actuary for a pension in payment - CEB - and a pension not in payment (either deferred or still accruing) - CETV.

The scheme actuary will be using different assumptions and factors to arrive at each valuation method and so there can and should be differences between the end transfer value results.

Regards

Phil

The Divorce IFA

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.