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  1. #1

    Pension and divorce

    My brother in law is divorcing my sister after 29 years of marriage. They have 2 adult children in twenties both still living in family home with my sister in GLC area.

    He has a good pension in civil service at high grade. He is 51 or 52. She has NHS pension but worked many years part time and only just returned to full time work. She is 54.

    They are working out settlement between them and seem to have agreed he will accept 60k or 70k as a deposit towards a new property for him in another part of the country. She will pay him out with savings gifted to her by my mum who has been very generous. That would leave her with the family home worth 700k with no mortgage

  2. #2
    If she accepts 90% of the family home and gifts him 10% in cash from her savings which 70k would be (no mortgage) does that mean she should relinquish her rights on his pension? There has been no mention of that from him and I am anxious she will struggle in retirement as even downsizing once the children have gone which could be sometime will not release a lot of equity given London house prices. As she works in that area and likes it she will not want to move out.

    Any advice on what she should be asking for from him? I think she should get figures showing his benefits accrued so far but she is fairly uninformed about pensions and seems to think it is not an important asset. They are doing a DIY divorce which I again think is a mistake without advice given the length of the marriage, the fact that she put in a lot of money to the house gifted by my mum and is a much lower earner than my brother in law. I am trying to get her to see she should not ignore his pension.

  3. #3
    She should definitely not ignore his pension. She definitely needs a solicitor.

    As a CS he will have an index-linked Final Salary pension the transfer value of which will probably be worth hundreds of thousands. He could also have been paying additional contributions to it.

    Having a 700k house is indicative of his salary and his pension will reflect that salary.

  4. #4
    I agree although I would say that the house value is partly because my sister paid for tens of thousands of pounds worth of extensions and improvements and because over the last twenty years in London property prices have gone up so much. I think he may be on around 70k salary. I am going to try and persuade her to at least get some figures from him re the pension as she seems to be only focusing on the house.

  5. #5
    I agree, she should not ignore his pension but equally he should not expect such a small sum from other equity sources. Unless there are other circumstances you have not divulged most divorces start at a 50 50 split of all assets. He could argue she should leave his pension if he is effectively ignoring 700k of property equity.

    Ideally all assets should be assessed for value, a 50 50 split made and a balance found from there


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