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is CETV a fair valuation if both parties are retired

  • elw2007
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10 Sep 22 #519950 by elw2007
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My STBX and I are separated and just starting discussions to split our finances. We both have final salary pensions and are both retired. He says a CETV is a fair valuation of his pension, but I keep reading article after article on line, saying that a CETV is likely to be inaccurate and under value a final salary pension. His pension is about twice mine so I want to make sure I'm not short changed.
In our specific case, as we are both retired and drawing our pensions, is the CETV a fair value or should I push for a joint actuarial pensions report ?

  • hadenoughnow
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11 Sep 22 #519957 by hadenoughnow
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The cash equivalent value is a blunt instrument for valuing the benefits of a future pension.
The aim of pension sharing is to equalise incomes in retirement. This may be the income from the whole pension or just the pension accrued during the marriage/cohabitation. You may want to look at the Pension Advisory Group's 2019 report.
If you know what the incomes are that will give an idea of what the split should be. For accuracy you really need a pensions on divorce expert to do the calculations.

Hadenoughnow

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20 Sep 22 #520030 by elw2007
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Thank you for your quick reply. My pension is 14K, his is about 28K, so I would need 7K pa from his pension to equalise our pension income. Would we really need a pensions on divorce expert to do the calculations ? Could we not just use a pension sharing order to pay me 7K pa from his pension, or is that too simplistic?

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22 Sep 22 #520037 by hadenoughnow
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The difficulty with what you are proposing is that the pension ceases when s person dies. If he predeceased you the income would end.
With a pension share you get an additional pension in your own right.
You could just agree to a 25% share of his pension. This is not a perfect solution as there are differences in pension benefits but if you agreed it could be a neat solution.

Hadenoughnow

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23 Sep 22 #520045 by elw2007
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So my suggestion to be paid 7K pa from his pension would be a pension attachment order rather than a pension sharing order ?
Our pensions are both already with the same provider as we both worked for the same company, so asking for a 25% share of his pension would be the simplest option as the benefits would be the same. If we did both agree to that, is the court likely to still insist on seeing a CETV for each of our pensions, or would they be happy to waive that given both our pensions are in payment and with the same provider?

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