Pensions and Divorce

[Frenchie1971]

My ex and I were married for 20 years, he earns approx. 52k and I earn approx. 28k. We both have pensions, mine is final salary and his is a Company pension so he considers mine to be better. I was also part time for about 10 years when our daughter was young. My new partner has offered to buy my ex out of our property but the ex has rejected the offer and is asking for a certain figure and if we won't pay he is threatening to go for my pension. Can he do this given my earnings are significantly less?

Yes. Whilst you were married all pensions are deemed communal property thus are subject to splitting upon divorce. It will be up to a court to decide the appropriate split. Any current earnings are irrelevant it's based upon assets alone. You may well end up having to pay him if your pot is worth a lot more than the equity in the house.

Hi hope you don't me jumping on this but what if I start up a pension mid divorce, after over a year of separation, would the ex be entitled to the pittance that might accumulate seeing as he doesn't have his own pension?

Not sure on this, only a solicitor can advise if the other party can claim.

Thanks for the reply movin

You need to get a pension statement from him, showing how much is pot is worth. As he has a company scheme his company will be contributing to it as well as him - my company contributes up to a generous 8% on top of my 8% of salary. Do not take his word for it - you need to see the pension provider's official statement.

With the discrepancy in earnings, there is no way your pot is worth more than his. It might be in 20 years' time, but that's irrelevant right now.

You really need a solicitor.

making flippant remarks like "there is no way it is worth more" isn't helpful. Even notional final salary pensions can be worth a lot more than pensions that have been exposed to the markets and normal investments. Plus with the scant information there is no idea how long or what has been paid into the pensions. Get all the paperwork from both sides then decide with a solicitor what is "fair" given the circumstances

'Flippant remarks' ha ha. Maybe I know what I'm talking about Wobytide? And I also said pension statements need to be provided and that the OP needs a solicitor. How very flippant of me.....

How can you know it is worth more? You've got zero details about either scheme. Therefore flippant, like I said

ODFOD

Both of you need to get a current valuation (CETV , cash equivalent transfer value) from the pension administrator. These values go into the "pot" along with all your other assets, property, equity etc and then you begin to agree a split. It gets complex when you're trying to offset the value of property ( a liquid asset that can be turned to money now) versus money in a pension (& not available to you for many years), they're not equal, and dependent on many factors, such as how many years from drawing the pension you are. Solicitors would advice an appropriate ratio. Many divorcing couples will often trade pension for property, as the lower earners typically needs money for property now, and higher earners more capable of getting mortgages may wish to keep their pension. Jam today or jam tomorrow.
The value of Defined Benefit/Final Salary pensions has increased significantly in the last few years following the change in law as they became attractive to private pension companies.

Thanks all for the advice :)