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Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34105
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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Pension Sharing. I have a pension and am getting divorced.

Resolved Question:

Please switch to Family Law. I did not mean to put this in Finance but now can't change it.

Pension Sharing. I have a pension and am getting divorced. I would like to understand how the order would potentially work. The pensions present value is £220,000. In other words. The documentation I have for it says that the deferred annual benefit when I reach 58 ( 9 years from now ) is £58,500. So, I presume that a typical pension sharing order would split the £58,500 in half, providing £27,750 for both of us? ( I am male and the breadwinner ) I am 49 and my wife is 42. I present the question because when my pension vests it will be worth more than this amount, but at the date we will have finalized our divorce this value is accurate in terms of the benefit I would receive. Secondly, does my wife have to wait until she is 58 to collect this money, or does she start to collect it when I am 58. I presume the latter.

Submitted: 2 years ago.
Category: Family Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
Does your wife have any pension provision on her own right?
How long have you been married and how long have you been paying into the pension?
Clare
Customer: replied 2 years ago.

No. No pension. I've been paying in for 18 years and have been married for 18 years.

Expert:  Clare replied 2 years ago.
Hi
If a Pension Sharing Order is made then the pension pot is split and the agreed percentage is transferred into a pension pot in your ex's name.
You are then both free to carry on and build up your separate pension funds into the future
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 2 years ago.

Thanks for attempting this. It didn't really answer my question unfortunately. My question was about how the order would work, but specifically about the mechanics of it. My point was that it is worth £58.5k today, but in a year from now it will be worth considerably more $160k, BECAUSE at that point it will be fully vested. If I settle the case today at my pension though is only worth £58.5k. If I quit tomorrow, I would have £58.5k. If I get fired next month I would have £58.5. My question then is £58.5 the basis for the pension pot split?

Expert:  Clare replied 2 years ago.
Hi
The mechanics is that it is not based on the benefit it is based one the Cash equivalent Transfer value.
If the CETV is £100,000 and it is agreed that the pension shall be shared equally then £50,000 will be transferred into a pension pot in her sole name.
Clearly if the pot is split then the actual pension received will be reduced if no more funds are added over the following years.
Clare
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