Pension settlement question

[SweetcornFritter]

This is probably a stupid question but when calculating our joint assets is it the current value of the pension or what it may be worth at retirement age that is taken into consideration? Also, does the lower paid partner have any claim over the income of the higher paid partner if there is a large discrepancy between the two incomes? Any advice gratefully received, thanks.

Pension based on estimated future valuation

Claim on income would be via spousal maintenance- answer is possibly but depending on many factors not least of all need

Pension is what it would cost, now, to have the guarantee of what it will deliver at retirement. That's for a salary-related pension. Other pension types just have a current value.

"does the lower paid partner have any claim over the income of the higher paid partner if there is a large discrepancy between the two incomes?"
Has to be a high income, typically £80k+, and usually where the lower paid gave up a career (e.g. for children) rather than being a lower earner all their life. But, as above, depends on lots of circumstances.

OK thanks both, but unless I am misunderstanding you’ve both said different things re: the pension value. So say the pension current pot is £250k but the final value pension in 10 years is likely to be £350k then would him getting 100% of his pension and me keeping the house valued at £350k be fair, or could he insist I sell up now and give him £50k?

Depends partly on what the kind of pension is - sounds like it could be a money purchase pension?

Why look at the value in 10 years rather than now -- after all your house could go up in value in 10 years, too. So I think you need to think about current values.

Also the ability to access money in 10 years (in a pension) is not as good as getting the money now. If I was him I'd be looking for rather more than £50k -- even going for half, and letting you have half the pension rights.

It's based on the current value.I had the pension ex had lots of savings,he kept his money,I kept my pension as they were about equal.We split the house 50:50.
Depending on how much it is worth you can claim half or ask for an eqivilant amount of money/his equity in the house etc.
The judge needs you both to be housed so how much he earns may not come into it but means you get more child maintenance.
It's not a nice process ,all the best and keep you eye on a better future.

You’d need to get the cetv value ( cash equivalent transfer value ) to start working out. As pp stated £1 in house now is not equal to £1 in pension 30 years down the line
There are a whole range of possible outcomes and only your solicitor will be Xs to advise you

The pensions companies will give you a 'cash equivalent transfer value', which is used to calculate the split. I suspect in your case the pension pot would count as worth around £250k.

Spousal maintenance - where a higher paid partner pays income to the lower paid one - is pretty uncommon unless there are small children involved and you gave up a lucrative career to bring them up. Even then most courts would rather give you more equity than give you a hold on his future income.

Obviously if you have children then maintenance will be paid, but that is child maintenance which is different.

That’s helpful thank you. I had hoped to be able to keep the house but it’s clear now that I will have to sell up. Also, no maintenance either. Damn, I’m going to be poor! Oh well better that than stuck in a loveless marriage I guess. Thanks again.

Pension is taken at current cash transfer value at date of separation.

The marital part is calculated by multiplying length of pension from start to separation / length marriage

Lots of things to be taken into consideration like how long you have been married, any children, difference between your incomes, your ages, your future earning potential. Depending on the answers to some of these, you might be able to keep the house.