A CETV doesn’t always give an accurate valuation of a pension because it has to make an allowance for any lump sum ,death benefits and any future increase in the benefits received due to the likelihood of an increase in earnings up until retirement age.
Other things which have to be taken into consideration when assessing the valuation options for a pension CETV include the tax implications of pensions, such as a widow’s or a dependant’s pension, along with the current position of the funding scheme.
In final salary schemes, such as military pensions or the police pension schemes the CETV rarely reflects the real value of accumulated pension rights. Sometimes the CE value can represent an undervalue and sometimes an overvalue.
All of these factors can affect a CETV’s valuation, which is why another option to consider if there are any disputes regarding a CETV’s value, is to obtain a specialist report from a pension actuary.
Financial disputes arising out of marriage or civil partnership which involve pensions, are complex. It is best to take legal advice from divorce lawyers with extensive experience of dealing with pensions [our team have that experience]. Further you are likely to need advice from a specialist actuary or financial advisor.
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And remember – initial phone advice and your first half-hour interview on any divorce or family law issue is absolutely free.