Pension offsetting....is this really correct?

TryingVeryHardto

Hi Folks,

I am currently going through a divorce, and we have agreed to offset my pension against some of the other equity (house, cash etc). I will give broad figures to illustrate my question and any and all advice or comments would be great received. 

House equity £358,000
Cash £70,000

Using my latest pension benefits statement and the Galbraith Tables for DB pension sharing (better/more accurate for DB pensions that CETV) the amount my stb ex wife should receive is £75000 after adjusted for tax (20%). No adjustment has been made for Utility.

We have agreed that my wife will keep the house and take a small mortgage of (58K)

She therefore will have £300K in equity from the divorce.

I will have the £70K cash and the £58K from her (her mortgage amount) add this to the off set pension amount of £75K and I will have taken £203K from the divorce. 

My question is:
Is this correct as even when I add on the pension offset amount of £75K I am still £93K less than her?

Should the calculation not be that instead of passing her the full £75K offset amount I should be passing her half of it as half from me added to hers would be the full £75K.

I will illustrate in the example below what I mean.
We have £2000 that needs split but I need my wife to have 100 more than me after the split. If I give her £100 then she will actually have £200 more. £1000+£100 = £1100 and £1000-£100 = £900. Therefore in order for her to have £100 more than me after the split it should in fact be £50 that I give. £1000+£50 = £1050 and £1000-£50 = £950 therefore £100 more as intended.

Is my thinking wrong here when applied to the pension offsetting?

Thank you

TadleyBaggie

Original thread here: https://forums.moneysavingexpert.com/discussion/6616841/pension-offsetting-is-this-correct#latest

VyEu

I've answered this before. No, you're probably not right. Get an actuary and do it properly