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Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34863
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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Just a quick hypothetical divorce question. I recently

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HiJust a quick hypothetical divorce question.I recently (2015) sold my business for approx. £1MThe proceeds have, for tax reasons been split between myself and my Wife. We currently have approximately £400K in savings/investments each.Our jointly owned house (no mortgage) is worth £300KI have a deferred pension with a cash equivalent transfer value of approx. £600k.My Wife has a pension in payment of £14kpaAsset summaryJoint : £300k house
Me : £400k savings, £600k pension pot
Wife: £400k savings. £14kpa pension in paymentQuestionsIf we divorced I presume everything is split?How is her pension in payment treated?..... would I be entitled to half (£7kpa) or the cash equivalent?If we divorced after I started to draw my £600k pension (expecting £20kpa in another 3-5 years) would that be beneficial?

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

How long hav eyou lived together and what other income do you each have?

Customer: replied 1 month ago.
20 years, married 17.No other income. We currently live off the investments and my wife's £14k pension in payment.Both 52 yrs old, no dependent childrenThanks

Why does your wife have a pension in payment already?

Customer: replied 30 days ago.
Ill health retirement at 30 with crohns disease. She is has however been in remission for 15 years.Her pension is not used to pay any outgoings, it's basically her 'spending' money.

How much is the annual income from the investments?

Customer: replied 30 days ago.
Structured to produce little actual income (about £6k) but investments sold each year to the value of about £45k .... do receive a bit over £50k but only £6 classed as interest/income

What is the CE value of your wife's pension?

Customer: replied 30 days ago.
Don't know.... would presume £350-400k ish

The starting point - and I suspect ending point - for division of all the assets will be 50/50.

Her pension pot is lower that yours - and accordingly you may face a pension sharing order to balance then out.

You will noy be entitled to spouse maintenance - nor at this point will you have to pay it unless you obtain employment

I hope that this is of assistance - please ask if you need further details

Customer: replied 29 days ago.
Hi thanksSo her pension in payment would be classed as a 'normal' asset based on the CE Value (£350-400K)?

Correct

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