opinion needed please

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sens19

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Hello, I would appreciate others opinions on which is the better way to go.

If the STBX is entitled to $100 K for her half of the house, cars etc and another 100 K for her half of my pension (which I will start to collect in 17 years from now) would I be better off to give her $100 K for the house and 50 k for my pension now or give her $100 K for the house and make her wait for the $100 k pension entitlement when I retire.

She is willing to take $50 k now to put a larger down payment on her new house and still have breathing room and then pay into her own pension fund over the next 20 years.

I would have to borrow the extra 50 K to give her the money now. Including the interest I am not sure if I would be ahead in the long run .

The thought of keeping my pension intact for retirement is very appealling to me right now but I most likely would be able to live off of only half of my pension down the road anyways .

Does anyone care to give me their thoughts ?
 
One consideration would be that if you give her the 50k now, she will have a huge bank account and you'll be in huge debt. If you ever get into a lawyer battle she's already won. Even if the long-term dollar value is not in favor, it still might be better to keep as much liquid assets as you can and not fill up her war-chest, should she choose to use it against you.
 
Ummm if she has an entitlement to the pension now, what does the pension administrator say? Is it locked in until you retire or do they have provisions for these kinds of situations?

Often times they'll be able to withdraw the funds and transfer to a spousal RRSP fund of some kind. Just make sure you account for any tax hit you'll take during the transfer.
 
Same situation applied to me. I chose to let her wait till the pension became available. Reason was, 21 years is a long time from now. I was thinking that if I took out a hefty loan to pay her a lump sum ahead of time I would be in large debt. Then I visioned myself dying in 10 years having paid a large portion of this debt while she lived high off the hog. Didnt sit well with me.

By taking out a 50k debt to pay her now instead of the 100k in 17 years (pre-tax), you aren't saving any money by the time taxes on the pension and interest on the loan are accounted for.

Doing this would solely benefit her.

Offer her $25k and maybe it would be worth while.

Just my opinion (but hey I am still a tad bit bitter)
 
Offer her 25-50K now if she signs off on any further claim to it. :D

Instant gratification vs. long term valuation.

That's of course assuming the pension admin isn't able to accomodate the request now.
 
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