lincolnshiremum
Junior Boarder
Nbr of posts: 6
 England and Wales
applicant in divorce
Thanks received: 0
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how to count pension in 20+ years time? 1 Year, 2 Months ago
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married 10 years, co-hab 8 years
2 kids, shared care (termtime 3.5 nights with each, over whole year more like W4+, H~3).
H - house = 545,000, pension c 20,000
W - pension CETV = 140000, EPV = 160000
Joint - Cash savings - 60,000
Each - net monthly income 2500, outgoings 2500. (because he is currently paying half my rent).
He wants to offset all of CETV of my pension against his right to stay in FMH, which he refuses to contemplate selling. Is it right that if retirement is some distance off, it is OK to take only a portion of CETV into account?
Any creative ideas out there?
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D L
Divorce Expert
Nbr of posts: 4861
England and Wales
other professional
Thanks received: 675
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Re:how to count pension in 20+ years time? 1 Year, 2 Months ago
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Hi there
Age is a crucial factor....I am guessing early 40s from your question????
If so he would be lucky to get an offset value of the CEVT at 25% - I would strongly argue for somewhere between 15-20%.
Amanda
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Nigel@BDM
Gold Boarder
Nbr of posts: 92
England and Wales
Thanks received: 12
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Re:how to count pension in 20+ years time? 1 Year, 1 Month ago
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My consistent actuarial view is that its wrong to discount the pension value in most cases. I think current practice is wrong and penalises the non-pension holder horrendously.
It looks like it works for you in this case, so no need for you to rock the boat.
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Actuary, Bradshaw Dixon Moore. We value pensions and pension shares on an appropriate basis for use in divorce. We are delighted to be partnering Wikivorce with our direct to public services, including our free Guide to Pensions on Divorce, which you can access through Divorce Services or follow http://www.wikivorce.com/divorce/Services/Pension-Valuations-and-Reports/ |
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shinyhappypeople
Platinum Boarder
Nbr of posts: 453
England and Wales
just thinking about divorce
Thanks received: 39
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Re:how to count pension in 20+ years time? 1 Year, 1 Month ago
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Hi there
Can I ask why you think pension offsetting is wrong Nigel ? I thought it was common to offset pension values as they were not liquid assets and so not worth as much .
shiny
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D L
Divorce Expert
Nbr of posts: 4861
England and Wales
other professional
Thanks received: 675
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Re:how to count pension in 20+ years time? 1 Year, 1 Month ago
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With respect you may think it is wrong Nigel, but the law is the law, and currently off setting is a perfectly valid and often undertaken exercise.
Amanda
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Nigel@BDM
Gold Boarder
Nbr of posts: 92
England and Wales
Thanks received: 12
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Re:how to count pension in 20+ years time? 1 Year, 1 Month ago
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I never said offsetting was wrong. Offsetting is great.
What I said was wrong was the arbitrary reduction in the value of the pension asset. Very wrong.
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Actuary, Bradshaw Dixon Moore. We value pensions and pension shares on an appropriate basis for use in divorce. We are delighted to be partnering Wikivorce with our direct to public services, including our free Guide to Pensions on Divorce, which you can access through Divorce Services or follow http://www.wikivorce.com/divorce/Services/Pension-Valuations-and-Reports/ |
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D L
Divorce Expert
Nbr of posts: 4861
England and Wales
other professional
Thanks received: 675
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Re:how to count pension in 20+ years time? 1 Year, 1 Month ago
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My mistake for not being precise enough.
Off-setting at a reduced value is perfectly valid and often undertaken exercise. Like I say the law is the law.
And I have to say - this one is one I agree with on the basis that to offset say at 45 at the whole value of the pension would leave the pension holder with a very bitter taste in his or her mouth.
A future asset can never be valued at the same pound for pound rate as an asset available today, hence off setting at a discount.
Amanda
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