Divorce & Pension Sharing

Pensions are often the second most valuable asset in a divorce — sometimes exceeding the value of the family home. We provide expert guidance on pension valuations, sharing orders, and building the best outcome for your retirement.

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Why pensions matter in divorce

Many people underestimate the value of pensions. While the family home is visible and tangible, pensions can be worth just as much — or more. Getting the pension division right is crucial to your long-term financial security.

Money purchase pensions

The value is straightforward — it's the current fund value shown on your statement. A £200,000 pension pot is worth £200,000. The sharing order will specify a percentage to be transferred.

Defined benefit pensions

These are valued using the Cash Equivalent Transfer Value (CETV), which can be surprisingly high. A pension promising £15,000 per year might have a CETV of £300,000 to £500,000 — or even more for public sector schemes.

How the court process works

There are three main ways pensions can be dealt with in divorce:

Pension Sharing Order

A percentage of one spouse's pension is transferred to the other, creating a clean break. The receiving spouse gets their own pension in their own name, which they control independently.

Pension Offsetting

One spouse keeps their pension in full, but the other receives a greater share of other assets (usually the family home) to compensate. No pension is actually split.

Pension Attachment Order

A proportion of the pension income is paid to the ex-spouse when the member retires. Less common now because it doesn't provide a clean break and ends if the receiving spouse remarries.

How we help

Accurate valuation of all pension types, including complex defined benefit schemes
Modelling different sharing scenarios to show the impact on both parties' retirement income
Working alongside your solicitor to ensure the pension aspects of the settlement are fair and achievable
Advising on how to receive, invest, and grow any pension share you're awarded
Rebuilding your financial plan for life after divorce

Frequently asked questions

Are pensions really split during divorce?

They can be. Pensions are legally considered matrimonial assets and can be divided as part of a divorce settlement. The court can issue a Pension Sharing Order that transfers a percentage of one spouse's pension to the other. However, pensions are not automatically split — it depends on the overall settlement.

How is a pension valued for divorce?

For money purchase (defined contribution) pensions, the value is the current fund value. For defined benefit (final salary) pensions, the value is the Cash Equivalent Transfer Value (CETV) — which can be significantly higher than many people expect. A £15,000/year defined benefit pension might have a CETV of £300,000-£500,000 or more.

Do I need a pension expert or just a solicitor?

Both. Your solicitor handles the legal process, but a qualified financial adviser provides the technical pension expertise. We can value the pensions accurately, model different sharing scenarios, and advise on the best way to receive and invest any pension share you're awarded.

What happens after a Pension Sharing Order is made?

The pension scheme implements the order by transferring a credit to the receiving spouse. They then have options — leave it in the existing scheme (if allowed), transfer to a new pension, or take benefits if they're old enough. We advise on the best option for your circumstances.

Going through a divorce?

We provide clear, compassionate guidance on the pension aspects of your settlement. Book a consultation to discuss your situation.

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