Pension valuation for divorce

[PetraDelphiki]

Quick question...when valuing a pension pot for a divorce settlement is it just the transfer value (whole value of pot) or is this the proportion of transfer value put in during the marriage (10 year marriage, been working approx 20 years)...

And any idea how the transfer value for a final salary pension is calculated?

Hi there I think its the total up to date or the projected final out come? I'm not certain which one. Have you sent away for it yet? Have you a solicitor they will help you.

Your pension company should know what to do. Just tell them you need a transfer value for a divorce and they'll organise it. They do this stuff all the time.

The consent forms ask for the cetv. So that would be total cash value.

It depends.. if you feel your ex spouse should not access pension pot prior to marriage then you will need a pension valuation which will analyse the contributions and make recommendations on a split This is usually used in high value pensions.
Cost is approx £1k but can be more, depends on who your solicitor uses. Critically it takes time, often a few months.

If pensions are not likely to be disputed I.e because marriage and pension accrual are similar then CETV can be used. This is available at no cost and relatively quickly from pension company.
Another reason for pension assessment could be if one spouse had final salary & the other money purchase and the "values" are not equally reflected in the CETV

After a long marriage a judge is looking to get a deal where there is equality, especially if the weaker financial partner has less working years to accrue a pension.

Thanks all - it’s for my dB not me but I will pass it on. SIL has missed about 3 years of work to have kids but is back full time and is likely to have a much better pension than him...I don’t think either have high value pensions (his is teeny) but if hers is final salary it’s going to be a lot bigger...

Transfer value for a final start pension will be calculated as current pension x service / accrual rate multiplied by an annuity amount which takes into account the expected increases before and after retirement. The annuity value will vary heavily depending on how old the person is and what the actual benefits are (eg increases) but something like 30-40 might be a reasonable guess.

This is interesting... my friend is staying friendly with his ex wife as they are yet to divorce and he thinks he will be entitled to half of her pension when they do, they have been separated almost 2 years.
People have told me he’s wrong and won’t get anything?

@Bluebird99 he could be. There can be lots if small things that make him entitled to some of it and lots that wont make him entitled to it.

I think it's just part of the pot so to speak. So may or may not be entitled to some of it. All the assets and debt get taken into consideration. As an example if its 50/50 and they need some of it to make it up to that amount they may consider it. You need to be wise while sorting out the finances, as it could effect you forever if your not.
Don't be pulled into not seeing legal advise just to make it easy. There are so many other things a solicitor takes into consideration that you just might not know or think about.