Pension or house equity? 27 June 2022 at 8:41AM in Over 50s MoneySaving 3 replies 426 views

Treesaregood

Hello,

I’m in the middle of a difficult divorce and trying to work out where I can best compromise in our financial agreement: of our marital assets. Assuming I can meet day to day expenses, for my longer term security should I be more willing to give up pension share or house equity?

Which is lower risk, longer term? 

For context: our marital assets are around £650k; we’re 50; own a mortgaged house, spouse earns £100kpa and I currently work as a carer for our disabled child and future earnings will be at best significantly curtailed (PT, low wage).

Thank you for your advice. 

PennyForThem_2

I would be inclined to ask this question on the Pensions Board. 

The question that comes to my mind is the type of pension your wife has (I assume it is her pension share?)  if it is a defined benefit pensionthat could be very valuable.

Brie

There's more flexibility with a house normally should you need cash.  You can sell the house at any point if you absolutely have to.  Pensions on the other hand can only be accessed once you reach a certain age and may provide a more certain cash flow at a later age which may very well be handy.  

Albermarle

I would also repost this on the pensions board, more experts there.
Pensions, Annuities & Retirement Planning — MoneySavingExpert Forum
Or maybe here as well
Marriage, Relationships & Families — MoneySavingExpert Forum

If you do it would be better to expand on the details. eg
Would you be giving up equity in the house you live in? How would that work if it is your and your child's home?
Is it just your Spouses pension involved , or do you have some pension provision as well ? Any idea what type of pension they have ?
Presume your Spouse will have to commit to regular payments to support you and especially his child as part of any settlement?