Armed Forces Pension Scheme Lump Sum and Child Support Payments

Trying_to_be_good

Thanks in advance for reading.

With the prospect of redundancies in the Armed Forces, can anyone please advice how the lump sum of an Armed Forces pension (the tax-free three-times annual pension payment, AFPS75, if that matters) would be treated for CSA maintenance calculations?

Is it treated as normal income, with a percentage going to the ex-wife? Or is it separate (as its long-term planned use is to pay off a mortgage this would seem justified - we hadn't planned on my OH leaving for sometime yet)?

There is no pension sharing arrangement - it was a clean break settlement, so the ongoing payments are for the children's maintenance. The plan would be to keep paying those payments.

I guess the same question applies for any redundancy payment itself, too.

thanks

coldstreamalways

It's a while since I read up on this but I'm pretty certain the lump sum is for the service person and doesn't feature in any pension or CSA calculations. Have a look at wikivorce as they have some useful resources and links.

13Kent

Can I suggest that you post this on the CSA thread - there are people on there that are very knowledgeable about the workings of the CSA - Look under the Work and Benefits section, under benefits and tax credits, and there is a separate CSA thread.

Trying_to_be_good

13Kent wrote: »

Can I suggest that you post this on the CSA thread - there are people on there that are very knowledgeable about the workings of the CSA - Look under the Work and Benefits section, under benefits and tax credits, and there is a separate CSA thread.

Thanks - I've posted in the CSA thread, too, but still interested in any further responses from those reading here - thanks!

Trying_to_be_good

coldstreamalways wrote: »

It's a while since I read up on this but I'm pretty certain the lump sum is for the service person and doesn't feature in any pension or CSA calculations. Have a look at wikivorce as they have some useful resources and links.

Thanks - I've plowed through a lot of the wikivorce site (never seen it before, so thank for the pointer), but can only find stuff on people preparing for the divorce settlement, not for when that's already in place. In our case, it was a clean break for the ex-spouse, and maintenance is paid along (but not through) CSA lines but with the assumption that would be only on salary, and only until the kids are 19.

batchrhodes

It all depends on the terms of your divorce. When I got divorced the Clean Break settlement my ex agreed to included a statement that she would not come after any of my pension.:T
If no financial agreement was put into the divorce settlement your ex can chase you for half of the amount of pension earned whist you were together. i.e. if married for 10 years whilst in the military and you served 22 years she would be entitled to get 5/22 of your pension including the lump sum.:mad: Kids do not affect this entitlement. :A

On a positive note you also have the same right to go after any pension she earned whilst you were married. :beer:

Trying_to_be_good

Thanks batchrhodes - fortunately it's not a question of the ex going after the pension, that's all cleared up in the divorce settlement. My main question is whether it's treated as income, and therefore treated the same as regular salary where 25% goes as child maintenance. And it's not an objection to or avoidance of child maintenance, but the pension (and any redundancy) is earmarked for paying off this house, having given up everything else in the divorce.