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Will my pension be divided if I get divorced?

When you think about getting divorced, what are the main assets you think about having to divide between you?

Naturally, most people think about their home, their cars, the family pet, furniture and the money they have in a savings account.

The asset that many people forget about is their pension.

Are pensions a marital asset?

Yes. In England and Wales, pensions are classed as matrimonial assets.

This means they must be disclosed as part of the financial settlement process, along with property, savings and investments.

Pension pots are often one of the highest valued marital assets, so they can make a drastic impact on the size of the divorce financial settlement either spouse is entitled to.

Whether or not a pension is divided depends on several factors, such as:

The length of the marriage.

Whether contributions were made before the marriage or after the separation.

The age and health of each spouse.

The overall financial picture, including other assets.

The court will take the answers to all of the above into consideration when determining how best to split a pension.

Every case is different, which is why you should discuss your options with your solicitor.

How will my pension be divided in a divorce?

When it comes to dividing pensions, there are three main approaches:

Pension offsetting

Pension sharing orders

Pension attachment orders

Pension offsetting might be the option that you initially think of. This is where, instead of splitting the pension directly, one spouse abandons their claim on it in exchange for a bigger share of the other available assets, like the family home.   

A pension sharing order is probably the most common solution we see our clients take. This is where a percentage of one spouse’s pension is transferred into a pension pot for the other, which gives both parties independence over their own retirement income.

For example, if you’re pension is valued at £150,000, and it was agreed each party would receive a 50 per cent share, then they would each receive £75,000.

A pension attachment order instructs that part of one spouse’s pension benefits is paid to the other when the pension begins to be drawn. 

This option is rarely used, especially for couples who want to sever all ties with each other, as it keeps the parties financially tied together.

Plus, if the holder dies before they start drawing from their pension, then the other party will not receive any funds from the pension pot.

How can we help?

Before finalising any financial settlement during your divorce, we recommend seeking guidance from an experienced family solicitor.

We can explain the implications of the different approaches to dividing your pension and work with you to achieve a fair and balanced outcome.

The choices made now can have a significant impact on your financial security in the future.

For advice and support with financial settlements and pension splitting, please contact our team.

Stuart Daniel

Director – Head of Family Department

I qualified as a Solicitor in 2006 and now specialise in divorce, financial settlements, childcare arrangements and Pre Nuptial Agreements. I have many years’ experience as a private family lawyer having worked with two other local firms before returning to Mander Hadley, where I first undertook work experience during my university studies.