How to get a true value of a police pension.

LostKitty

Hi all

I'm new here but don't know where to turn.

I've run my own consultancy business for nearly thirty years and have built up a healthy pension, but I've got to give half of it away to my cheating husband!

My business involved a lot of international travel, so my husband gave up the job to look after our children. But now I'm advised by his lawyer that the official transfer value of his pension is less than half the number my lawyer said it's worth.

There are a number of websites that say I should pay an actuary to get a true value of his pension - I can see for myself it would cost around £200k to buy an annuity that would provide the index-linked amount he's going to get - but my lawyer is unwilling to say whether a court would go on the actuarial value or the CETV of less than £100k.

I'm already furious he cheated on me. How can I avoid getting shafted in a divorce that is all of his making?!

Drp8713

The CETV provided by the scheme is the one they will use. It is a public sector scheme and the GAD factors are always poor.

Cant you just opt for becoming a pension credit member in the scheme (i.e get a defined annual pension in your name) rather than taking a poor value public sector CETV?

Clive_Woody

Might be worth looking for a new lawyer as this sounds like it could be a significant difference in amounts and you need the right advice.

Silvertabby

Drp8713 wrote: »

The CETV provided by the scheme is the one they will use. It is a public sector scheme and the GAD factors are always poor.

Cant you just opt for becoming a pension credit member in the scheme (i.e get a defined annual pension in your name) rather than taking a poor value public sector CETV?

Drp8713 beat me to it.

Dox

LostKitty wrote: »

I've run my own consultancy business for nearly thirty years and have built up a healthy pension, but I've got to give half of it away to my cheating husband! Not necessarily.

My business involved a lot of international travel, so my husband gave up the job to look after our children. But now I'm advised by his lawyer that the official transfer value of his pension is less than half the number my lawyer said it's worth. Where did your lawyer get their figures? The scheme in question will issue a transfer value for divorce purposes (he needs to ask specifically for that - the value is the same as a non-divorce value but the presentation/supporting paperwork needs to be different)

There are a number of websites that say I should pay an actuary to get a true value of his pension - I can see for myself it would cost around £200k to buy an annuity that would provide the index-linked amount he's going to get - but my lawyer is unwilling to say whether a court would go on the actuarial value or the CETV of less than £100k. Your lawyer is incorrect, or at least in practice will be. A major report issued earlier this year made it clear that using the CETV could be unfair/misleading, but the courts don't have the expertise to do much else, not least because there are so few pension sharing orders made. In practice, the CETV issued by the scheme will be the relevant figure

If you have correctly understood your lawyer, your lawyer seems to have some curious ideas!

Dox

Drp8713 wrote: »

Cant you just opt for becoming a pension credit member in the scheme (i.e get a defined annual pension in your name) rather than taking a poor value public sector CETV?

May not be an option if OP's pension is higher than her husband's CETV - the court is more likely to leave each side with their own pension and split other assets to arrive at a fair settlement.

LostKitty

Tell me more about 'not necessarily' giving away half my pension...

Dox

LostKitty wrote: »

Tell me more about 'not necessarily' giving away half my pension...

Pensions are taken into account when assessing assets for each side, but aren't automatically split in half as you seem to think. The value of a pension may be 'offset' against other assets, so if keeping your pension savings intact is important to you, then divide something else with a larger share to your husband. Your solicitor should have been through this with you already. If not, ask why not.

swindiff

This is what happened when my wife and I split. She got the proceeds from the house and I kept my pension intact in the divorce settlement.

LostKitty

Oh I see.

Yes, that has been discussed and it's tricky as he's the stay at home dad and I've been advised to offer him more of the house to offset against my pension. But equally I want to come home to my kids.

LostKitty

She got your entire house? You must have a huge pension!
What was the total split of assets?