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Pensions as part of divorce settlement

3 replies

sallyslapcabbage · 09/03/2012 12:21

Reposted from Divorce as it was suggested more traffic here:

I'm posting this on behalf of a friend so apologies if I don't have the full facts.

Long marriage and no children (she had a child from a previous relationship but she's an adult now).

He's been having an affair for years and torturing friend whether he will/won't stay with her - hence she's pretty exhausted by now.

Finally made the decision to divorce but my friend is desperate to hold onto the family home and trade it off against his generous pension - does she stand any chance based on the following figures:

He will shortly be 55 and works in the public sector (final salary pension with mental health officer status). Hence he can retire at 55 if he wishes or carry on working and still take a lump sum.

His currenty salary is £30k.
At 55, he can either take a £54k lump sum and £18k per annum pension or £98k lump sum and £14k per annum. She doesn't have a CET for his pension.

Friend's pension (also final salary I think) has a CET of £165k (worth £7k per annum). Her current salary is £18,000 (self employed so can be a bit precarious).

House is valued at £375 (with £285k equity in it).

Friend wants to keep the house in exchange for him keeping all his pension. Does she stand any chance?

I assume a judge would award a 50:50 split of assets but how are the pensions treated? Is a discount figure applied when considering their value to the overall pot?

Sorry for war and peace but he's been so horrible to her and I'm desperate to help. Thanks.

OP posts:
Collaborate · 09/03/2012 13:52

A discount figure is applied if she takes cash/assets in lieu of pension. She needs proper actuarial/IFA/legal advice.

At first glance, assuming there are no relevant children, she's asking for a bit much.

Far too complicated to deal with on a message board. Lawyers get sued for tens of thousands if they give slapdash advice over pensions and get it wrong.

babybarrister · 09/03/2012 16:00

This reply has been deleted

Message withdrawn at poster's request.

sallyslapcabbage · 09/03/2012 20:16

Thanks for the advice - I suspected it might be the case. I don't think he'd be willing to do a Mesher as I can't see what's in it for him. But I guess she can always put it forward and hope.

I guess she needs to be aware that she may well have to sell the house and start coming to terms with that. Thanks for your comments - appreciate it's complicated.

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