Pensions and Divorce

Practical Legal Advice on Dividing Pensions During Separation

Pensions During a Divorce or Separation

Pensions are often one of the largest assets in a marriage or civil partnership, yet they’re sometimes overlooked during divorce or separation. Understanding how pensions are treated in a financial settlement is essential to protecting your future income and retirement plans.

At Holland Family Law, we guide clients through the complex process of dividing pensions, ensuring settlements are fair and legally binding. Whether you have a workplace pension, personal pension or multiple pension schemes, our solicitors can help you understand your options and make informed decisions.

Book a confidential 30-minute consultation to discuss your situation and the next steps for your financial settlement.

Dividing Pensions Ensuring Fair Settlements

 

In England and Wales, pensions are part of the “matrimonial assets” considered during divorce or civil partnership dissolution. This means they can be divided in the same way as property, savings and investments.

The court can deal with pensions in several ways:

Pension Sharing Orders – A percentage of one spouse’s pension is transferred to the other, creating two separate pension pots.

Pension Offsetting – The value of a pension is balanced against other assets, such as property or savings, without physically splitting the pension.

Pension Attachment (Earmarking) Orders – A share of the pension benefits, such as a lump sum or regular payments, is paid to the other spouse when the pension becomes payable.

Types of Pensions Included in a Divorce Settlement

 

The right approach depends on your circumstances, the type and value of the pensions involved and your long-term financial needs. All types of pensions can be considered in a divorce settlement, including:

  • Workplace pensions (defined benefit or defined contribution schemes)
  • Personal pensions, including stakeholder pensions
  • Self-invested personal pensions (SIPPs)
  • Additional state pensions (but not the basic state pension)
  • Overseas pensions (depending on jurisdiction and enforceability)

A full valuation of all pensions is essential before negotiations begin. Courts usually use the Cash Equivalent Transfer Value (CETV) to determine the value of a pension, though this may not reflect its true worth. In some cases, actuarial advice is necessary to ensure a fair division.

STEP ONE

Initial Consultation

We start with a confidential 30-minute meeting to review your financial situation, including details of any pensions.

STEP TWO

Advice and Planning

We explain your legal rights, outline your options and where necessary, recommend obtaining an expert pension report. This may involve consulting a pension actuary to understand the real value and implications of splitting or offsetting pensions.

STEP THREE

Representation and Response

We draft and submit the required financial order to the court whether it’s a Pension Sharing Order, an offset arrangement or another solution. We represent your interests throughout, aiming to reach a fair and sustainable settlement.

pensions and divorce

Who We Help?

Our solicitors support:

  • Divorcing or separating married couples with pension assets
  • Civil partners with retirement savings to divide
  • Individuals seeking to protect or claim pension rights in a settlement
  • Clients needing advice on pension offsetting or sharing orders
  • Those requiring clarity on complex pension arrangements, such as final salary schemes or overseas pensions

We tailor our advice to your circumstances, always focusing on protecting your long-term financial security.

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From the moment I started to talk too Holland Family Law, they made me feel at ease with the possible situation that may be in store for me.  They answered all my questions with exceptional professionalism and clarity and with a sympathetic ear.  Thank you for your help.  I would recommend your firm thank you again.

Mr P, Leicester, December 2024

Holland Family Law have been fantastic on helping me deal with my divorce. They have guided me at every stage and explained the process to me so that I felt empowered throughout the whole process. They have always been at the end of the phone and respond to emails promptly which has put me at ease at such a difficult time. They were brilliant at explaining things in such a way so that I understand and can make informed decisions. I would highly recommend the whole firm.”

Ms BC, Lincs, February 2025

Just cannot thank you enough for all the help and support provided by the HFL Team, not just for me but especially for my daughters too. Thank you so much, it’s all much appreciated.

Mr F, Leicester, July 2024

Frequently Asked Questions

Pensions are included in the assets to be divided. The court can make orders to share, offset or earmark pensions, depending on what is fair and reasonable.

Pension offsetting involves balancing the value of one person’s pension against other assets, such as property or savings, instead of splitting the pension directly.

Yes, most pensions are included, from workplace and personal pensions to certain state and overseas pensions. The basic state pension is excluded but the additional state pension may be divided.

Pension sharing divides a pension between you and your former partner at the time of divorce, creating two separate pension pots. This is often considered the most straightforward way to achieve a clean break.

The Cash Equivalent Transfer Value (CETV) is commonly used but for complex schemes, an actuarial valuation may give a more accurate figure.

In cases involving significant or complex pensions, yes. An expert can ensure a fair settlement and prevent undervaluing a pension.

This order allows a portion of a pension’s benefits to be paid to the former spouse when the pension becomes payable. The pension remains in the original member’s name.

Yes, you can agree between yourselves or through mediation. However, it’s vital to have the agreement formalised by a court order to make it legally binding.

Talk to Holland Family Law

Dividing pensions is one of the most important aspects of a divorce settlement and can significantly affect your financial future. Whether you’re starting the process or need to review an existing arrangement, professional legal advice can make all the difference.
At Holland Family Law, we combine legal expertise with practical guidance to help you reach a fair, enforceable agreement.
Book your 30-minute confidential consultation with a solicitor experienced in pensions and divorce today.

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