Value of pensions in Divorce

comeandgo

I’m not sure on your LA pensions, but I do know my husband had a final salary pension with a company, he was no longer working for them.  He had to get a valuation for divorce from previous wife.  Less than five years later he started that pension and the  25% lump sum was more than the valuation he had been given.  We don’t know if this is standard, that valuations given by the pension companies are low or company made a mistake but I now advise friends if getting a divorce make sure the pensions are valued by professionals.

Thrugelmir

comeandgo said:

I’m not sure on your LA pensions, but I do know my husband had a final salary pension with a company, he was no longer working for them.  He had to get a valuation for divorce from previous wife.  Less than five years later he started that pension and the  25% lump sum was more than the valuation he had been given.  We don’t know if this is standard, that valuations given by the pension companies are low or company made a mistake but I now advise friends if getting a divorce make sure the pensions are valued by professionals.

Defered pensions continue to rise with inflation. Valuation is at point of separation not when the benefit is finally drawn. 

LobsterSoup

comeandgo said:

I’m not sure on your LA pensions, but I do know my husband had a final salary pension with a company, he was no longer working for them.  He had to get a valuation for divorce from previous wife.  Less than five years later he started that pension and the  25% lump sum was more than the valuation he had been given.  We don’t know if this is standard, that valuations given by the pension companies are low or company made a mistake but I now advise friends if getting a divorce make sure the pensions are valued by professionals.

That's really interesting, and exactly what I'm trying to get to the bottom of.  That's obviously way more than inflation, especially over 5 years. I don't think the LA ones will be *that* undervalued, but I'm sure they are a little.  The valuations appear to be between 18 and 19 x the annual pension payable.