Pension payment

[Jas683]

Hi

I am at the point of financial negotiation and my question is this. My husband has been told on reaching 55 next year he is able to cash in approximately £60,000. I am 55 this year and he says that I am able to receive half of this along with a small monthly pension, the latter I am not wanting. Has anyone else got experience of this?

It's certainly true that at age 55 you can access existing defined benefit schemes (like the Teachers Pension).

What’s your question ?

If you are to recieve half of his pension as part of the settlement it should be split legally so you chose when to start drawing it.
Your husband will have to request a CEV (Cash Equivalent Value) from is employer, this can take upto 3 months. Mine was local goverment and took 8 weeks. Exes was public sector and was even quicker.

Part of the financials is a pension sharing order which is a legal document that goes to the pension company after the absolute (or what ever the new name is) and the pension will be split as per the order and your share go into a pension in your name. It has to go into a pension scheme.

I'd recommend you go to see a couple of financial advisors for advise where to put the money, the details need to go onto the PSO.
www.moneyhelper.org.uk/en is also worth looking at, goverment backed advise. They do free phone calls to talk through pension options.

If he's able to take out £60k at 55, that will put his pot at aprox £240k.

Getting all the assets on the table and valuing them...

To know what a fair split of assets is and to reach a financial settlement divorcing parties need to know what the assets of the marriage are, and what each asset is worth.

Look at a Form E. A long document in which each party sets out their assets, income, and financial needs. You can see in it the assets that are taken into consideration upon divorce and financial settlement, for example property (the former marital home), pensions, stocks and shares etc. It also lists the documents needed that show the value of assets for example CETVs (cash equivalent transfer values of pensions - which can be requested from pension providers).

To find out what some assets are worth an independent expert can be used. Property can be valued by an expert - estate agents, pensions by CETV and / or a pension on divorce expert (PODE) report and so on. It is important to decide what needs a valuation by an independent expert and factor in the costs of these.

Pensions can be very valuable – equivalent or more than the value of the former martial home in some cases. Divorcing parties might hold different types of pensions (not like-for-like, so difficult to compare without an expert). Circumstances might be complex for example an age difference or pensions in payment. One party may have stayed at home to look after children.

@AnnaMagnani and @silentpool made some useful comment on this in this thread

www.mumsnet.com/talk/divorce_separation/4664756-what-do-i-need-to-do-about-our-pensions?reply=121093079
When splitting the assets of a marriage…
www.legislation.gov.uk/ukpga/1973/18/section/25 applies
images.ctfassets.net/o8luwa28k6k2/2cpp2mEMwBJWJLuzTiTruB/b5397e7459154fad8927826a2c99acdd/section-25-expert-guide.pdf

The income, earning capacity, property, and other financial resource which each of the parties to the marriage has or is likely to have in the foreseeable future is taken into account. As I understand it, first consideration is given to the welfare (while a minor) of any child of the family who has not yet attained the age of eighteen.

The needs of each divorcing party are taken into account and as I understand it 50 / 50 is the starting point – so unequal shares based on circumstances and needs is possible, for example 60 / 40.

Full and frank financial disclosure is required and usually provided when Form E is exchanged. If after Form E there is missing information / evidence Questionnaires may be exchanged to retrieve it and if still missing after that Deficiencies are exchanged. A solicitor’s letter can be sent to retrieve financial information evidence. A Court Order can also be applied for to gain financial information / evidence / valuations that is missing / essential.

These offer a free advice session about pensions on divorce and separation https://www.moneyhelper.org.uk/en/family-and-care/divorce-and-separation/divorce-or-dissolution-how-we-can-help-with-your-pension

Free advice line (busy so keep trying) rightsofwomen.org.uk
Guides on divorce and financial settlement
www.advicenow.org.uk/guides/how-apply-financial-order-without-help-lawyer

Pensions on divorce
www.sharingpensions.co.uk/penaudit3.htm
www.mediateuk.co.uk/the-ultimate-guide-to-pensions-on-divorce/
www.nuffieldfoundation.org/news/new-good-practice-guide-addresses-shortfall-in-understanding-of-how-to-treat-pensions-on-divorce

Valuation of pensions – pensions on divorce expert report
www.collinspensionactuaries.co.uk no relation – useful website
www.collinspensionactuaries.co.uk/pension-data-collection/ templates for information required

Legal advice should be sought.
This link gives you an indication of hourly rate for solicitors
www.gov.uk/guidance/solicitors-guideline-hourly-rates
Some organisations offer free advice from solicitors and barristers rightsofwomen.org.uk/get-advice/ On their FAQs page…”Our Legal Officers and Volunteer legal advisors are all solicitors and barristers”.
Some family solicitors offer an in initial free consultation and some a fixed fee rather than hourly.
Some barristers can be directly instructed e.g., via Clerksroom Direct
Mumsnet suggest www.advicenow.org.uk/tags/separation-divorce-and-dissolution-civil-partnerships

The question is above.

Thanks for your reply.

Thanks for your reply, his CEV is well over £300,000.

Thanks for the reply.

your question was not clear

you simply stated you didn’t want it

so are you not wanting share of pension? Are you not wanting him to draw down at 55, are you wanting to trade off pension for something else or are you wanting your share invested and not to receive monthly amount ?