CETV Offsetting

Just found out that my exs CETV Value is worth £284,078. As I have no pension and do not work at present I was hoping I could offset this against the family home (value £275,000). Is this possible, my solicitor says we cannot take this value for offsetting it would be much less. We have been married 23 years I am aged 47 ex age 47. Other assests include savings at £126,000. I have 2 children both with me age 10 and 19.

It is common practice to “discount” pension values when they are offset against other assets, so in broad terms your solicitor’s statement is correct. These discounts can be arrived at very arbitrarily, which inevitably means that one part will lose out. There are objective and professional ways of calculating an appropriate discount, but there is no one-size-fits-all adjustment, despite what some would suggest.

Our view is that the appropriate discount is allied to the financial circumstances of the person retaining the non-pension asset. The more the person is in need of cash, the bigger the prospective discount. Beware of suggestions that only 25% of the pension value should be used for offsetting – this is a commonly quoted figure and one that has no legal or technical legitimacy.

Another point for you to consider is whether the £284,078 CEV is a fair and reasonable valuation. Depending on the type of scheme, it might be worth more – which would be in your favour for offsetting.

Peter

Thank you for your prompt reply. Having read on here I get the impression that the CETV value is usually less than actual. Does this not mean then I have a case with regard to off setting this against the home. I have the children and no employment at present. He has his own place now and a very gd salary £45,000 pa - and is only providing 500 pm for us to live off. I wonder if my sol is on my side as it seems going he is going for the minimum in everything including insisting I lk for wk. Which I am doing by the way.

Redwine

Firstly let me say I do not know the law in NI, but can comment on your post from an England/Wales perspective.

You are concerned that your solicitor is not doing the best job he can for you, from what you have told us (and obviously there may be more I don't know) but it appears to me that he is trying to manage your expectations, rather than sell you short.

He is correct that your ex's pension will not be offset against the equity £ for £. The equity is available now to be spent on whatever you like, the pension is not available for nigh on 20 years and has to stay a pension providing an income.Secondly - why would you want to offset the pension, it appears that by doing so you will have the home but no money to live on in retirement, would it be at all possible to split the equity (you will probably be entitled to a larger percentage of the equity than him as you have to house your 10 year old for the next 8 years)without offsetting, down size the house using your share of the equity and savings, and ask for a percentage of the pension so you have both housing and an income in retirement?

An income of £45K pa will give your stbx an income of £2,700 pcm. Assuming he does not have your youngest for overnight stays (if he does then reduce any child maintenance by 1/7th for each night with stbx) then his CSA liability is £405 pcm. He is not liable to pay any child maintenance at CSA rates for the 19 year old.

With a 10 year old a judge would expect you to work and contribute to financially supporting the family. You will not be entitled to benefits with the level of savings you have, but the benefit system would also expect you to be a job-seeker and would refuse to pay out if they felt you were not looking for work or restricting the type of work you wanted.

Your stbx's solicitor would state you are receiving global maintenance of £405 CM and £99 SM pcm, unless you apply for Ancillary Relief you are in fact receiving nearly £100 pcm than he has to pay you.

It would appear that you would have a good case for applying for ancillary relief in the short term, however is your husband paying anything else (maybe not to you directly but to the "family home") who pays the mortgage, council tax, gas bill, car insurance etc? If he is still paying these then add them up and work out exactly what percentage of his salary because you don't want to apply for AR if this means you are going to get a sum lower than you "receive" (albeit unseen) now.

I know this is bad news, and am often accused of being "blunt", but I firmly believe that people should be aware of the full state of play financially in order to make objective decisions. I suspect your solicitor is similarly minded rather than not doing a good job for you.

Is it a final salary pension?
How £big is the mortgage on the house?

We have no mortgage, also 2/3 rds of the savings mentioned r tied up in Endownments. But will mature soon. I think it is a final salary pension. He works in the public sector. Hope this helps thanks

Has your solicitor suggested getting the pension valued by a pensions actuary - to get a proper valuation - sharing the cost between you?
What will the endowments be worth when they mature?