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Splitting Pension on Divorce
stevew48
Posts: 58 Forumite
Not quite sure if this is the right forum area but I am sure I will be redirected if not. My wife and I are currently separeated, nearly 2 yrs and l am likely to file for divorce before the end of the year. We have been married for 25 yrs and I know that she is entitled to at least half the equity in the house and also part of my pension but how is the pension divided. I receive an RAF pension which I am told is pension in payment and is treated with my salary when determing spousal maintenance. However, I have also accrued nearly 10yrs in the teachers pension fund (still in TPS) currently worth approx £5k per annum on retirement. My wife had 7yrs in civil service scheme (her last year with police) and her pension valuation is approx £1.6k per annum. Although she now has a job outside the civil service she has not transferred her pension fund nor is she contributing to her new works fund. When pension splitting would they take both sums, add together and then split 50% each i.e £3.3k each or would that be to simplistic.
Any advice grateful
Stevew48
Any advice grateful
Stevew48
0
Comments
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MOVING THREADS FOR BETTER RESPONSES
Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to the Pensions board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].Signature removed for peace of mind0 -
Hi.
There are 3 ways that pensions can be dealt with in a divorce (note the rules are different for Scotland so will need different information if you are divorcing there)
1. Offsetting: This is where 1 person gets the pension and the other person gets something else of equivalent value
2. Earmarking: This is where a proportion of 1 persons pension is earmarked for the ex-spouse. The pension remains intact for now but has an order attached that a percentage of it must be paid to the ex-spouse when the pension is put into payment.
3. Pension Sharing: This is where one person effectively gives part of their pension pot (or equivalent value if a DB scheme) to the ex-spouse, who then can either be made a member of the scheme or (as is often the case) transfers out to a scheme of their choice.
Option 3 is increasingly common (the legislation for it was only introduced a few years ago). The exact split will depend on the divorce settlement (may not be a 50:50 split of assets), but yes it could in theory as simple as you both effectively get £3.3k or the equivalent penion fund to that.
This is only a very brief overview and there are several areas that I have simplified over (e.g charges, effects on limits) - your lawyer would be the best source of proper specific to you advice on this.
JonathonI have worked for 5 years as a Pension Administrator and then a further year in a non-administrator pension role. I am not (and never have been) an adviser. Do not take anything I say as advice, it is information given on the best of my knowledge.0 -
Jonathon,thanks for the info. My wife and I are still amicable and we are hoping to sort things out without costly solicitors fees. Hopefully we will be able to agree on a package that is acceptable to us both. Am I right in assuming that the court would still have to approve our financial split?Stevew0
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Hi there, my first post, so I hope I'm doing this right!
My ex-husband and I have finally got round to sorting the pension out - the pension sharing order says that i am entitled to what is the cash equivilent of about £40 000. I would have liked to have left it in his scheme, but I've jsut discovered this is not possible, and my local govmt scheme wont allow me to transfer it there. I am 39 and I have only been paying into my scheme for a few years.
Any thoughts on what would be the best thing to do with the money? I havn't got a clue!0 -
A personal pension will take it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Try here www.ondivorce.co.uk for adviceMama read so much about the dangers of drinking alcohol and eating chocolate that she immediately gave up reading.0
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