When going through a divorce, the main asset that couples focus on is the family home. The conversation then flows to any cash and maybe who gets the car. But one of the important assets that is often overlooked and, next to the family home, can often be the most valuable, are any pensions. 

Many people assume that because they paid into their pension themselves, it’s theirs to keep. But in divorce, pensions are considered part of the matrimonial pot, just like any other asset. That means your spouse may be entitled to a share, even though they haven't directly financially contributed and it's not in their name. 

This can come as a surprise, especially if you’ve worked hard and contributed to your pension by sacrificing your income over many years. But the law takes a wider view. The aim is to reach a fair outcome for both of you, especially where one person may have taken time out of work to care for children or has lower retirement savings. The risk of ignoring pensions is that whilst you may achieve a settlement that you consider fair in the short term, overlooking pensions could leave you in a financially vulnerable position on retirement. 

Specific advice on how pensions are to be addressed on divorce can be found in https://www.nuffieldfoundation.org/wp-content/uploads/2023/A-guide-to-the-treatment-of-pensions-on-divorce-2nd-edition.pdf

Pensions can be complex, especially with different types like final salary schemes or private pensions. Family lawyers can help advise you on how the courts will approach your pension on divorce. In addition, we work closely with actuaries or pensions on divorce experts who can provide the specific calculations on how the pension(s) can be shared. 

If you’re going through a divorce and want to understand how our solicitors or mediators can help, please do not hesitate to get in touch.