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Question:

 

I am getting divorced and my husband has a Final Salary Scheme pension with a fund value of approximately £150,000.

 

I have been saving for a pension with Equitable Life for years and years and my fund value is also worth about £160,000.

 

My Solicitor says that these pensions cancel each other out, but I do not accept this because it looks to me as thought my husband’s pension is going to give him far more generous benefits than mine.  What can I do about this?

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Answer:

 

It is often the case that Final Salary Scheme pensions are said to have a certain fund value which, if compared to the pension that can be bought off the shelf, seem very low.  In all probability, if you were to attempt to purchase a pension with identical benefits to those shown by your husband’s pension, you would have to pay considerably more than the £160,000 that your pension fund is worth.

 

The way round this is to insist upon a pension-sharing report by a specialist in pensions with a view to establishing what might be the actual commercial value of your husband’s pension as opposed to the figure that you have already been given.  Obviously, if your husband’s pension will generate an income that is significantly higher than your own pension generates when you both reach the same age, then it is logical to assume that your husband’s pension is, in fact, more valuable than your own and you will need an actuarial expert to address this issue.

 

The consideration you bring to me is not unusual and any competent Solicitor will be able to get in touch with a pension-sharing specialist who can give you an estimate of the actual commercial value of your husband’s pension fund and your financial settlement can be made in the light of that assessment.

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Barbara Jordan