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Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34263
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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UK Divorce - US pension can't be split...

Resolved Question:

I am concluding a UK divorce. I would like to understand what might be a normal percentage deduction to the value of a pension that can't be split. I paid an actuary for a a pension appraisal which indicated a “present value for equitable distribution” of $1,223,841.33, half of which is $611,921 or in GBP £401,476. What would a typical discount be on that £401,476 to provide as a lump sum (she will received approximately £1.5m in other assets as cash) given that it is a defined benefit plan and that I can't collect a pension for 9 years and so the £401,476 value is NOT the same as cash.

Submitted: 2 years ago.
Category: Family Law
Expert:  Nicola-mod replied 2 years ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 2 years ago.

This question is important. I would like any type of answer even if it's to say that they need more info, better clarification ... anything. I've been waiting on this. Clare has answered in the past and has even provided me with a figure based on some incidental information I had given her. This is just updated information that is more accurate.

Expert:  Nicola-mod replied 2 years ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
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.
Did you not ask the Actuary for an opinion on this?
Clare
Customer: replied 2 years ago.

It's US based so he just gave me the total value of cash that would be needed to pay $96,000 US per year, which is how the payout is described. He came up with 1.2m US$. Half of that is $600k and that translates to £400,000 GBP. To pay that as an offset now is substantial considering it's not a cash in hand number. I coudn't access my half of the £400k for example. So the short answer is no, he did not give me an opinion on that.

Expert:  Clare replied 2 years ago.
Hi
That is fine - I had forgotten the different nature of this pension.
There s no set way of calculating this.
However a nine year wait is not that long - so maybe a discount of 50% with any where in the range of 40% - 60% viable in terms of likely court outcomes.
This can however only be the roughest of guides - please ask if you need further details
Clare
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Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34263
Experience: I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
Clare and 3 other Family Law Specialists are ready to help you