Pensions are one of the most valuable assets a person holds. Yet during divorce, they’re often misunderstood or overlooked altogether. And if you’re thinking about remarrying after a divorce, it’s even more important to understand how your past and future financial positions could affect one another.
This guide explains how pensions are dealt with during divorce, what happens after you remarry and why getting legal advice early can help protect your financial future.
How Pensions Are Treated in Divorce
In divorce cases in England and Wales, pensions are considered a marital asset and can be divided as part of the overall financial settlement. The court uses several options:
- Pension Sharing Order: This is the most common. A percentage of one person’s pension is transferred to the other, giving both parties separate pension pots.
- Pension Offsetting: One party keeps their pension and the other receives a larger share of a different asset — for example, the family home.
- Pension Attachment Order: This directs a portion of the pension income to the ex-spouse when the pension is paid out. Less common now.
Your divorce lawyer will help decide which method best suits your circumstances. Not all pensions are equal and the law allows for flexibility to account for fairness.
Why a Financial Order Matters
If your divorce ends without a financial order, especially a clean break or financial consent order your ex-spouse may still be able to make financial claims in the future, including against your pension. A financial order provides legal closure. Once in place, it prevents either party from making future claims. This is crucial if you’re planning to remarry, because remarriage can affect your rights.
How Remarriage Changes Things
Remarrying without first securing a financial order from your previous marriage can limit your ability to make any future financial claims including on pensions. Here’s why timing matters:
- If you remarry before getting a financial order, you lose the right to apply for one.
- If you remarry after securing a clean break or pension sharing order, no further claims can be made.
It’s not just your rights that change — your obligations may too. Pension death benefits or survivor pensions may automatically go to your new spouse, depending on the pension scheme. Always review your nominations.
Planning for Retirement After Divorce
Dividing pensions fairly requires more than just looking at the numbers on a statement. Different schemes like defined benefit and defined contribution have different rules and values.
That’s why financial dispute solicitors often recommend getting an independent actuarial report. This can:
- Provide a clear valuation
- Highlight disparities between schemes
- Help structure a fair settlement
This information helps the court and your solicitor create a more accurate agreement.
What Happens to a Pension After a Divorce?
Once a Pension Sharing Order is implemented, the person receiving the share gains full control of that portion. It becomes their pension and their ex-spouse cannot make further claims on it.
If a Pension Sharing Order was not included in the divorce and no financial consent order or clean break order was made, the door remains open to future claims. This is why sorting pensions at the time of divorce is so important.
Key Steps to Take
Here’s how to make sure your pension is protected:
- Secure a financial order: If you’re already divorced but haven’t finalised finances, speak to a solicitor now.
- Update your pension nominations: Ensure they reflect your current circumstances.
- Get advice before remarrying: Once you remarry, you can’t apply for a financial order from your previous marriage.
- Understand the value: Work with your solicitor to accurately assess the true worth of each pension.
- Consider a clean break: Where possible, a clean break can offer clarity and long-term protection.
Why It’s Worth Getting Legal Advice
Sorting finances during divorce isn’t always straightforward. There are emotional decisions to make, practical considerations and complex pension rules to navigate. A family lawyer or financial dispute solicitor will:
- Review all pensions and financial assets
- Help you understand your rights and obligations
- Guide you through the options available
- Draft and submit the correct court orders
They’ll also make sure that your future is safeguarded, especially if remarriage is on the horizon.
Common Misunderstandings About Pensions and Divorce
- “It’s my pension — they can’t touch it.” Pensions are marital assets and can be divided, even if they’re in one person’s name.
- “We didn’t sort out pensions but we agreed to move on.” Without a financial order, this informal agreement may not hold up legally. Claims could still be made.
- “I’ll deal with pensions later.” Delaying can lead to missed opportunities or losing rights after remarriage.
Can You Make a Claim Years Later?
Yes, if no financial order was made at the time of divorce. There have been cases where claims were made and accepted years later. If you’re unsure, seek legal advice as soon as possible.
Summary: Don’t Leave It to Chance
Pensions are a vital part of your long-term financial future. Failing to address them during divorce can have serious consequences. If you’re divorced, thinking about divorce or planning to remarry, don’t leave this to chance.
Speak to Holland Family Law. We offer practical legal advice on pensions, divorce and remarriage. Our team helps you understand your options and ensures everything is done properly — first time.
If you are in Leicester or nearby areas such as London, Derby, Nottingham, Northampton, Lincoln, Loughborough, and Birmingham, we can guide you through every step.
Book your Free No-Obligation 30-minute consultation today – expert legal support is just a call away.
Reach us on 0116 4362170 or at claire@hollandfamilylaw.co.uk for confidential, practical advice from our family law specialists.
