What happens when a pension sharing is awarded

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We have finally agreed on me having 35% of his pension.

BUT - how is that calculated?

Will the pension company calculate his pension if he retired on that date with all the bonuses etc and then work out the amount, or will they just use some form of cetv that doesn;t include the bonuses?

Thinking about actuary but don;t really know what question to ask.

What bonuses do you mean?

The CETV is the current value of his pension, not the final value. You will get a pension credit of 35% of the CETV to put into a pension in your own name. Any benefits he earns subsequently are his, any contributions you make to your fund benefit you.

His pension has benefits added at the end so the I don't think the cetv is the true value if he retired now.

Well then you need a report from an actuary. Do you have a solicitor?

Is it a with profits fund?

Whether you get the benefits of the bonuses would depend on what type of fund and what the pso says

Typically on encashing with profits early you get a share of bonus reflecting performance over the investment period but treatment can vary significantly

Yes, that is the term I was looking for!

We have a cetv of 500k, But i'm sure with profits it will actually be higher - I guess what i'm asking is, if i have 35% is that 35% of cetv or 35% of fund with profits at the time.

And will the pension administrators add the profits or not without having an actuary calculate it.

There are two types of with profits, traditional and unitised. The second type is much more common now.

With the first type the terminal/final bonus is granted at fixed points, typically this would be the retirement date selected at the outset for a pension contract. Getting a pension share is effectively taking a transfer value early as funds are transferring to a policy of your choice. You are unlikely to get terminal bonus if you have this type of contract if you transfer out early but it will depend on the contract terms.

For the second unitised type of with profits some or all of the terminal bonus is usually added as you go along and can change regularly depending on investment performance over the period of investment. If, over the investment period the fund performance has been poor or negative then there can be a negative adjustment but this is unlikely given recent market performance if the policy has been going for a while. On transfer for a pension share you would normally get your share of terminal bonus calculated at the point the transfer takes place.

The above is hypothetical and what I would do is contact the provider or look online and they should be able to tell you the treatment on transfer specific to the type of policy that it is

It is 50% of what was earned during marriage.

In my case I asked for a statement at day of marriage, and subtract that from day of non-cohabitation.

The 35% is calculated at what he had at start of marriage minus what it was worth at end of marriage.

However during that time the value increases over time.

Because it increases over time, that is something neither of you contributed towards. So a case is made that it (the interest accrued) isn't a marital asset as it wasn't contributed by either party.

There is actually a court case going through House of Lords on this exact matter. To more accurately define its value at the relevant date of seperation.

brodies.com/blog/family-law/supreme-court-landmark-divorce-decision-pensions/