For many people divorce pension offsetting is the simplest and most desired option. However, the complexities of dealing with pension offsetting can be off putting. Concerns over the valuation of the pension and how it is valued properly against savings or equity are common.
As with pension sharing I have dealt with hundreds of pension offsetting situations and understand how different pension experts and actuaries deal with this approach.
There is no uniform approach to pension offsetting and care needs to be taken to ensure it is undertaken properly and in a joined up way.
If this is something I can help you with, please get in touch today on 0800 092 1229 or email phil@thedivorceifa.co.uk
Common FAQs
Pension offsetting is when the value of a pension is balanced against other assets, such as property or savings, rather than being split directly. For example, one spouse may keep their pension while the other takes a larger share of another asset.
Pensions are usually valued using a Cash Equivalent Transfer Value (CETV). However, this may not always reflect the true worth of the pension, so it’s often recommended to seek advice from a specialist to ensure the valuation is accurate.
Not necessarily. The fairness depends on accurate pension valuation, the type of pension, and the overall division of assets. Professional financial advice helps ensure that offsetting leads to an equitable settlement for both parties.
