This means that 75% of the pension value would be considered a marital asset. So if you had $200,000 total in a pension, that amount would be multiplied by 75%, meaning the marital value would be $150,000 to be divided.
Do you need actuarial help when divorcing?
A common issue which arises within divorce proceedings is if and how a pension should be divided. Therefore, it is often advisable for a report to be provided by an actuary so that the real value of the pension may be ascertained, along with the anticipated value on retirement.
What does a pension actuary do in divorce?
A pensions’ actuary will be able to provide an accurate valuation of the pension fund and expected payments. Unfortunately, an actuary’s report can be expensive, and often couples are put off by the cost and feel that the size of the pension does not justify the expense.
How is a final salary pension split on divorce?
Pension Sharing orders split the pension at the point of divorce, and you will then be put in charge of any amount of the pension you receive. With Pension Offsetting, you may receive other marital assets, for example, a higher portion of the share of the marital home.
Do you need an actuary for a divorce?
Pensions and Divorce – do you need an actuary? Pensions are not often the first thing you think about when considering divorce. However, pensions will often be the second largest matrimonial asset behind the matrimonial home and they need to be valued and dealt with within a divorce settlement.
Can a pension be valued during a divorce?
In England, Wales and Northern Ireland pensions are not valued as any other investment, so it is important that your solicitor engages an actuary to determine the value of the pension rights in today’s terms during the divorce process. There is a duty for both parties in the divorce to fully disclose their assets, including pensions.
How is the actuarial valuation of a pension determined?
The actuarial valuation determines what the current value is of a defined benefit pension for this purpose. Keep in mind that the actuarial valuation is a pre-tax valuation. So be sure you’re comparing apples to apples.
How is pension sharing calculated in a divorce?
The prescribed valuation WRPA 1999 method is the CETV – but for sharing – often equalising income from the pension at the date of divorce -it seems to be that only an actuary can determine how to do that – ie calculate the percentage of the CETV required to produce the desired amount of income for the non-member half of the equation.
