Pension sharing in 30s

[Sarahd3342]

Hi

Could anyone help. There is quite a disparity in mine and my stbxh pension. A judge has told us of a fair split overall and that I could have some of his pension...I think around £50k of it.

My question. So, I won't obviously be able to have it until retirement age...so 30 years away. Is it worth having? Would 50k in today's money only be worth say 10k then or will it go up? I looked up and I can't just add it to my own teacher one so where does it go? How does it work?

Thanks

50k in today's money means that it has been calculated allowing for an estimate of the rate at which it may increase in the time before retirement, but also allowing for the fact that it will be worth less because of inflation. The idea of doing this calculation is that you can compare it to other assets with a known current value (eg savings, property etc) on a like-for-like basis. So it's definitely worth having, in the same way it would be worth having £50k now. That's what "today's money" means.

In terms of how you would actually get the money, there are different ways of doing this. Either you could receive an equivalent amount of the other assets, or you would have to wait until he retires and your share will come to you then. Or you can transfer out your amount now into a private pension plan. Probably best to get legal advice on this.

As i understand it, if his pension scheme allows it, the £50k will be transferred to a separate 'pot' with the same provider and it will grow over time, until you retire and access it at pension age. With investment growth, less fees, it should be worth a good deal more £50k when you retire.

It will be transferred to a separate pension pot that you can the add to or simply leave until retirement

You’ll be trading other assets to get it though so you need to work out which is your priority

Thank you.
So.does that means, if his pension is worth 50k I could knock off 50k off the house to buy out? Or could I knock off 20k but pension share the other 30k?

Thanks

It won’t be a 1:1 as pension is not liquid asset now, it might be ( just as example 50k pension might be 30k equity). You’d need proper pension valuations

ut also depends on many other factors such as

length of marriage
earnings potential
etc

but if you’re both young you should be looking at overall near 50;50 split if assets which doesn’t mean everything is split 50:50

Thank you @millymollymoomoo we had an FDR and the judge said 60/40 split to me including pension. I think it's due to earnings potential

I was in a similar situation at a similar age. We agreed on a split of assets, so he kept the pension, and i had the equity in the house, which was a similar amount - I think it was slightly less.
To me, I didn't want to be going to him for money in my 50s, so long after we divorced, when we could both be remarried, different lives and circumstances. I did not want to have to be linked to him forever more.