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Property Equity v Pension asset

  • Shipinthenight
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06 Sep 21 #517641 by Shipinthenight
Topic started by Shipinthenight
Hi, my ex-partner will owe me a value of equity from the house we shared although they are remaining in the property.
They cannot afford to give me the cash but have agreed to offset it against some of my pension due to them as part of our settlement.
Is it usual to match the value in equity against the CETV value of a pension or use some other calculation. My concern with a CETV offset is that the projected benefit from said pension indicates that for example the 25% tax free lump sum is nothing like 25% of the CETV, 25% lump sum being like half of 25% of the CETV and I'm losing out when I am in fact due the cash from the property equity..

Kind regards

  • WYSPECIAL
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07 Sep 21 #517645 by WYSPECIAL
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You need to consider the whole of the CETV not just the tax free portion.

How old are you? If you’re 55 you can access it now. If you’re 35 then you’ve got at least 22 years to wait.

An asset that can be liquidated today is closer to the same as house equity than an asset that can’t be liquidated for many years.

You need to provide more details.

  • notgettinganywherefast
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07 Sep 21 #517646 by notgettinganywherefast
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Also you say ex partner - were you actually married or in a civil partnership? If not I doubt you be entitled to the benefit of any asset that isn't in your name.

  • Shipinthenight
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07 Sep 21 #517647 by Shipinthenight
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Hi and thanks for the response. I'm 59. We have agreed to split the equity in the house based on previous valuations. We have agreed in principle to share my pensions 50/50 from a date yet to be agreed. I'm not discounting the whole CETV's just using the lump sum to indicate the difference between the actual cash from the property equity, c.£40k, that I will be owed compared to offsetting that value against CETV - £40k off of the part of the CETV that my ex will be entitled to is equivalent to far less in real cash now and would not give benefit of a similar value unless I lived for decades.
Is offsetting against CETV the common practice in these circumstances.

Kind regards, S

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07 Sep 21 #517648 by Shipinthenight
Reply from Shipinthenight
Hi, thanks for getting back - married. Kind regards, S

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