Divorce and pension question

Stevev99 · 20 July 2015 at 2:20PM

Hi, not sure whether this should be in the pension section but it is related to a divorce many years ago?

When I divorced my first wife, it was before the days of pension splitting however the court order did provide her with 1/6th of any 'maximum' lump sum.
When the rules of my company pension changed making it possible to make the maximum lump sum, in theory the whole pension fund I quickly had a new court order issued and agreed to explicitly state that for the purposes of the lump sum allocation, the calculation to be used should be no higher than 1/6th of 2.25 times annual pension payment. So for example, pension is £30k multiplied by 2.25 = £67,500 and 16.66% of that equals £11245.

I have however just started AVC's and the company pension administrator are trying to say that AVC's would count towards any lump sum assessment. How can that be if I don't plan to take any of the AVC's as pension and withdraw the lot as a lump sum? This seems completely wrong in my mind?
Any ideas?

HappyMJ · 20 July 2015 at 2:24PM

You could go back to the court to approve a splitting of the pension now instead of when you retire. Could you maybe offer her £11,245 in cash now to finish the matter once and for all.

Stevev99 · 20 July 2015 at 2:31PM

Thanks, offering the cash now has come up in conversation!
To be clear, there is absolutely no pension splitting involved in this divorce since was 6 months before that came in (phew!).

This is purely about allocation of 1/6th of any lump sum allocated to the pension.

Divorce and pension question

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free