PENSION POT

Ayr_Rage

@aayush if you are planning to divorce then an agreement will be needed as to how any pensions are divided, you cannot just grab it and hope for the best.

Please get advice !

lisyloo

It will be taken into account in the divorce settlement, there is no way to avoid that.
property is very traceable.
you can draw down - yes, if you have have a DC pension pot.
if you are on £24k per annum, then you can drawn down around £36k before you start paying 40% in income tax.
if you draw down a higher amount you’ll lose 40% of it in income tax which is suboptimal.

what do you need for the deposit?

lisyloo

aayush said:

NOT FOR THAT AS I NEED TO MOVE TO A FLAT AND MY AGE DOES NOT HELP GETTING MORG AS I NEED LARGE DEPOSIT TO CUT MONTHLY OUTGOING 
SORRY FOR CAP KEY BOTRD GOT STUCK

Why do you need to move to a flat immediately?
why not sell the current home and then buy a flat?

aayush

Ayr_Rage said:

@aayush if you are planning to divorce then an agreement will be needed as to how any pensions are divided, you cannot just grab it and hope for the best.

Please get advice !

Hi
even though I paid in to the tension my self as the ones in question are price ones thus not sure how they can be split as still have 8 years b4 I reach retirement  age

aayush

lisyloo said:

It will be taken into account in the divorce settlement, there is no way to avoid that.
property is very traceable.
you can draw down - yes, if you have have a DC pension pot.
if you are on £24k per annum, then you can drawn down around £36k before you start paying 40% in income tax.
if you draw down a higher amount you’ll lose 40% of it in income tax which is suboptimal.

what do you need for the deposit?

lisyloo said:

It will be taken into account in the divorce settlement, there is no way to avoid that.
property is very traceable.
you can draw down - yes, if you have have a DC pension pot.
if you are on £24k per annum, then you can drawn down around £36k before you start paying 40% in income tax.
if you draw down a higher amount you’ll lose 40% of it in income tax which is suboptimal.

what do you need for the deposit?

Hi i need to draw down as the need for a new flat once the paper is all signed and delivered, as my age 59 and salary is 24k and have hp of 230.00 a month thus larger deposit thus reaction in borrowings money plus draw down will be taxed 

aayush

lisyloo said:

aayush said:

NOT FOR THAT AS I NEED TO MOVE TO A FLAT AND MY AGE DOES NOT HELP GETTING MORG AS I NEED LARGE DEPOSIT TO CUT MONTHLY OUTGOING 
SORRY FOR CAP KEY BOTRD GOT STUCK

Why do you need to move to a flat immediately?
why not sell the current home and then buy a flat?

As present flat will be taken over by the wife once the divorce is settled as not getting any help from the council or other share ownership sites 

lisyloo

aayush said:

Ayr_Rage said:

@aayush if you are planning to divorce then an agreement will be needed as to how any pensions are divided, you cannot just grab it and hope for the best.

Please get advice !

Hi
even though I paid in to the tension my self as the ones in question are price ones thus not sure how they can be split as still have 8 years b4 I reach retirement  age

Marriage is a partnership.
the starting point is 50/50.
you have 8 years before “state pension age”. You can retire any time you like.

one common arrangement is that wife gets the house, husband gets the pension. This is often in scenarios where there are children and the wife cares for the children. An assumption would be that this is not the case at your age,

another option ions is that the wife gets a % of the draw down from the pension when you retire. This means you are tied to each other in some way and many people prefer a “clean break” type settlement.

you come to an agreement between yourself usually at great expense using 2 solicitors, but it’s down to both of you.
did either of you bring significant assets to the relationship? Or have you been together a long time?
if it’s the latter then expect 50/50 regardless of earnings unless there is something significant e.g. one of you brought a property to the relationship.

lisyloo

aayush said:

lisyloo said:

It will be taken into account in the divorce settlement, there is no way to avoid that.
property is very traceable.
you can draw down - yes, if you have have a DC pension pot.
if you are on £24k per annum, then you can drawn down around £36k before you start paying 40% in income tax.
if you draw down a higher amount you’ll lose 40% of it in income tax which is suboptimal.

what do you need for the deposit?

lisyloo said:

It will be taken into account in the divorce settlement, there is no way to avoid that.
property is very traceable.
you can draw down - yes, if you have have a DC pension pot.
if you are on £24k per annum, then you can drawn down around £36k before you start paying 40% in income tax.
if you draw down a higher amount you’ll lose 40% of it in income tax which is suboptimal.

what do you need for the deposit?

Hi i need to draw down as the need for a new flat once the paper is all signed and delivered, as my age 59 and salary is 24k and have hp of 230.00 a month thus larger deposit thus reaction in borrowings money plus draw down will be taxed 

How much do you need for your deposit?
is it less than £36k

Ayr_Rage

@aayush it doesn't matter when you drawdown or take a pension, in a divorce it is taken into account.

One of my work colleagues got stung for half his pension pot in an acrimonious divorce and the CETV of the whole pension was over a million pounds at the time, he had to work several years longer than he originally planned to pay off his ex and have a pension he could live on too.

lisyloo

aayush said:

lisyloo said:

aayush said:

NOT FOR THAT AS I NEED TO MOVE TO A FLAT AND MY AGE DOES NOT HELP GETTING MORG AS I NEED LARGE DEPOSIT TO CUT MONTHLY OUTGOING 
SORRY FOR CAP KEY BOTRD GOT STUCK

Why do you need to move to a flat immediately?
why not sell the current home and then buy a flat?

As present flat will be taken over by the wife once the divorce is settled as not getting any help from the council or other share ownership sites 

I presume this is your existing flat not the once you are buying.
if she takes this then the equity in it will be deducted from her 50% share.

you don’t give any numbers but as an example if the flat had say £200k equity and your pensions £200k equity, then she could keep the flat and you keep the pensions in a 50/50 split.

note that mediation is a lot cheaper than 2 solicitors so if you are able to discuss then it may be better. Most people get 2 solicitors at some expense.