Mediators have asked stbx for his CETV of his work pension which he and his work have been contributing to for 18 years, I am assuming that I will be given 50% of that as there is no equity in the house and no savings?

My question mainly though is shortly before I met stbx he was awarded a lump some as compensation from the NHS and a monthly compensatory pension ongoing index ­link­ed. The lump sump was split 50/50 with his first wife as was the equity they had in the house which was little. He is now left with the monthly compensatory pension which is six hundred and something pounds each month. Is that pension also able to be shared? Or not?

Also stbx's work has a thing that for every share he buys in the company they buy him another free, and he buys the maximum he can each month. He has cashed in all he is able to right now, but of the ones he can't what happens to them through the divorce? And in future finances, is this bonus taken into account when maintenance is worked out?

As there is no equity (actually we will end up in debt when the house sells) and my wage will be around 15% of his, every bit helps.

How do I go about finding a pension fund to put my share of the pension in? Is there such an account where I don't need to add to it, if I can't afford to, but can just leave my fund there growing etc.

And is there such a thing as a risk free pension fund, I don't want to lose it or even risk losing it, so where do I put it?

As you can see I know nothing about pensions.

Hi Maisie

cant answer all your questions !! its amazing how many questions arise when you start looking at divorce isnt it ?

Any annual bonus he receives will be on his p60 and so will be part of his income for csa payments , I would imagine any pension payments are also counted as income for maintenance purposes .

Regarding shares , presumeably they have a value and should be declared on form e.

somewhere to put your money where it is safe !!! million dollar question .
Guess you could try a tessa or isa .

take care maisie

shiny

I was under the impression that the pension money has to be put into a pension fund specific for the purpose? I'd rather have it in cash and put it in property but I get the impression that isn't an option for this money. So I am destined to rent forever and then when I reture my pension will be paying my rent and I wont be able to enjoy it! So in fact the fact that I have this pension makes me no better off, because if I didn't have it, my rent would be paid by housing benefit. So its not worth having if I can't buy something with it, like a flat or small property. But maybe I am mistaken and I can use my share of the pension as cash for property?

Hi Maisie

Blind leading the Blind here Im afraid , maybe someone else will advise !!

Would your stbx prefer to raise a lump sum of money to give you in return for any pension share ?
If he could , then his pension could stay whole and you could have cash you need .
Do you know the value of his pension and how much of it you would be en­title­d to ?

shiny

Hi Maysie

I can offer a few comments on the pension bit.

As you say, a 50:50 split of his pension is the starting point but it is usually better for all involved not to view the pension in isolation. I cannot comment on what may or may not happen regarding his monthly compensation payment but I suspect that it will be considered as an income source and the fact that it is a pension will be ignored.

Looking at his works pension, this would usually be looked at once all the other issues such as your “needs” are dealt with. If it is split in any way, rather than offset, against a maintenance settlement for example, there may be a pension-sharing order. A pension-sharing order would take some of his current works pension pot and pass it to you. As you suggested, anything coming out of his works pension in this way must go into a pension arrangement for you. You cannot have it as cash. His works pension scheme will have a policy on how it deals with pension credits (as your pot is called). They will either create a pension for you in his works pension scheme (an internal credit), or more likely, they will make a cash sum available to be transferred into another pension arrangement of your choice (an external credit).

You cannot just choose where to put the pension and just tell them to send it. The pension arrangement (scheme or private pension provider) will not accept the money unless they are sure that you have been properly advised by someone who is authorised as a financial adviser by the Financial Services Authority. This will usually mean that you will choose an independent financial adviser (IFA), who will give you professional advice. Advice of this sort is not inexpensive, as the IFA is legally obliged to do a lot of research about you and your financial affairs before offering advice on where you might invest your new pension pot. This advice can easily cost £2,000.

Either the financial advisers’ fees can be paid as a single fee, or they may be able to offer you the option of taking their fee as a commission from the pension provider that is chosen for your pot. If the commission option is chosen, it will effectively be taken out of your new pension pot. Pension schemes (such as his works pension) often charge an administration fee for implementing a pension sharing order. Depending on how the scheme chooses to do this, either it will have to be met as a cash fee, or, it is often deducted from the original pension pot.

In conclusion, although you have a theoretical en­title­ment to part of his pension, the expenses incurred in dealing with it could possibly outweigh the benefits to you; unless you can make it a condition of the settlement that he meets all the costs of dealing with the pension. For this reason, do not be surprised if your lawyer suggests that it is not financially worthwhile to pursue a share of his works pension.

Peter.

Thanks Peter. At mediation today I was told that I could have a 50% share of the pension which is valued at £90577 so half of that around £45,000 I guess.

So, where do I put it where it is completely SAFE and secure, as this is going to be my only asset from the divorce, I have no house, equity, money or anything? I guess from what you said, where the costs would be lowest too. And do we share the costs of organising where it all goes or do I pay it all?