Pensions

[Knockerefc]

My wife is a teacher of 14 years. We have been married 8 years and are now divorcing due to many things. She has agreed to 50/50 on the equity of the house. Is it worth me asking about her pension or is it not worth the hassle because it won't be worth anything at the moment due to her only being 36. I just don't get any of this pension stuff but I've read time and time again it's our second biggest asset after our house. Please help. Any advice is appreciated

Yes, you should investigate pensions. You could be entitled to 50% (as she would be to 50% of yours).

Is it 50% of zero because we are to young to have accumulated anything and not worth fighting over or is it 50% of her final pension? I'm just confused. Any help is appreciated though. Thanks

No it's not 50% of zero. If she has been accruing a final salary pension, that pension will have a cash value now, even if she is nowhere near retirement age.
You should definitely look into it.

On divorce, the cash value of a final salary pension (otherwise know as 'defined benefit' pension) will typically be split between the parties in line with what's called a 'pension sharing order'.

It'll be her pension value NOW though. Not when she retires in 30 years.

@PrincessMargaret if it's final salary, the cash value now could well be pretty significant after 14 years' accrual

Back of the envelope calculation suggests should be more than £100,000 in standard valuation terms if you're looking for purely ballpark values. The teachers' pension scheme is worth more to those who joined prior to 2007.

It isn't likely to be equal pensions when half of hers was earned outside the marriage, and a court may feel that any pension sharing is disproportionate at such a young age.

Take proper advice from a family solicitor. People on Mumsnet talk a lot of nonsense about divorce and finances.

At present a woman aged 36 has a retirement age of 68. That is another 32 years away. Possible in that time government makes significant changes to pensions. More likely to result in pension being lower than those who previously worked in Public Sector as Government tries to reduce its debt?

As BertBibby points out Court unlikely to agree Pension Share if someone has contributed to the pension for 32 years after Divorce.

Here is a relevantly recent article
www.telegraph.co.uk/pensions-retirement/financial-planning/getting-divorced-go-pension/
I would speak to a solicitor.

For pre-2007 joiners to the teachers pension scheme the pensionable age is 60, I think.
If your spouse had spent 8+ years contributing close to 10% of their gross salary (and that's excluding the employer contribution) to a savings product, I think you're entitled to be raising questions about its fair division.
Of course an actual court case would turn on lots of other features which, in this instance, we don't know about.

Yes any division would be on what it's worth today

Have you got a pension to share too? If not, why not?

I do have the government pension set up. I'm a hgv driver working for a family business not a national company. I'm just getting advise not being greedy. My wife is already on about a 60/40 split in her favour because she will be primary carer of our 13 year old daughter so I'm just exploring all avenues at the moment