Case Study 3 - Am I Being Taken For A Ride?

Background

  • Mr R approached us feeling particularly down as a jointly instructed equality of income calculation had not provided the results he wanted.

Concerns

  • He felt that this was a particularly bad deal for him.
  • The pension share would mean he would lose approximately £100,000 of his pensions.
  • This meant that from an initial ownership split of 70:30 during the marriage he would end up with only 30% and his ex wife would receive 70%.

What We Did

  • We reviewed the pension sharing report with our actuarial expert and spotted that the IFA involved had taken a number of short cuts:
  • The second state pensions had not been valued at all.
  • No attempt had been made to independently value the pensions.
  • An assumption was being made that annuity rates would stay the same.

The Results

  • Based on the figures provided we estimated that £120,000 and hers at £16,000.
  • Therefore, the overall pot was being undervalued by approximately £136,000.
  • By extrapolating the figures it became clear that the actual deal on the table was more like 52% to his ex wife.
  • Our client was able to relax knowing that the deal was not as bad as he first feared.

What Our Clients Say...

I have been impressed with his client focussed approach...
I have had the pleasure of working with Phil O’Connor, The Divorce IFA and have found him to be both knowledgeable and approachable. I have been impressed with his client focussed approach and I am confident and happy to recommend his services.
Karen Atkins - Partner, Family Department, Stephensons Solicitors LLP

Do You Have A Question Related To This Case Study?

Use the form below to ask me anything about this case study. I promise that anything you say will be 100% confidential.

  • Some of our Accreditations & Awards