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Valuing pension rights on divorce

Pension rights in divorce or dissolution settlements can often amount to the largest asset after the equity in the family home.

Complications inherent in valuing pension rights are increased by the large number of different pension arrangements which exist. There are several sources of pension income including:

The Basic State Pension

The Additional State Pension.

The New State Pension.

Defined Benefit Scheme - a scheme in which the benefits payable on retirement are defined and generally by reference to length of service and final salary.

Personal Pension Plan or “Stakeholder” Pension Scheme.

The sum which the parties will wish to take into account in a settlement is the current capital value of part or all of a divorcing spouse’s income stream after retirement. . .

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