Pensions and divorce

Our specialists help clients navigate the complex division of pensions during divorce or separation, ensuring their long-term financial security is protected.

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Pensions are often one of the most valuable assets in a marriage, yet they are repeatedly overlooked or misunderstood during divorce or separation. Their complexity, which ranges from different types of schemes to varying rules on access and valuation, can make dividing them fairly a real challenge.

Getting it wrong can have lasting consequences for your financial future. That is where our specialists can make a real difference. With expert legal advice, you can ensure pensions are properly valued, fairly negotiated, and, where necessary, protected through court orders.

Valuing and dividing pensions

When splitting pensions in a divorce, the starting point is usually to assess the cash equivalent value (CEV) of each pension, this is an estimate of what the pension is worth if it were transferred today. A fair division rarely means a 50/50 split of pension cash equivalent values; instead, the goal is often to achieve pension equalisation, where both parties end up with a similar level of retirement income. Factors like age, health, length of the marriage, and whether part of the pension was built up before the relationship began can all influence the calculation. It may be appropriate in some cases that certain pensions are ring-fenced.

In more complex cases, especially with final salary schemes or large pension pots, it is vital to take proper advice. Defined benefit schemes will all have different rules on how to value a pension and these must be considered carefully. A solicitor can help ensure the right figures are used and that any split reflects your long-term financial needs. Our experts can help guide you on how to deal with your pensions and have experience working with complex pension schemes, including those from the armed forces or other uniformed services.

Dividing pensions in a divorce

Once the pensions have been valued and entitlements agreed, one spouse may need to transfer a portion of their pension to the other. There are three main methods for dividing pensions on divorce, our specialists will help you choose and action the one that best suits your needs.

Pension sharing

Pension sharing is often the most straightforward and cleanest method. It involves a court order transferring a percentage of one spouse’s pension into a separate pension pot for the other. This gives both parties immediate, independent control of their own pensions moving forward.

Pension offsetting

With pension offsetting, the value of the pension is balanced against other assets—for example, one spouse keeps more of the pension while the other receives a greater share of property or savings. This is often a complex calculation as value in a pension is not the same as cash in hand or other liquid capital.

Pension attachment

Less commonly used, pension attachment orders (also known as earmarking) allow a portion of the pension benefits to be paid to the other spouse when the pension comes into payment. Unlike sharing, this doesn’t create a separate pot, and payments are dependent on the pension holder’s circumstances meaning there are often risks attached with this approach.

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Pensions and divorce FAQs

Are all pensions included in a divorce?

Yes, all pensions are considered in a divorce, regardless of whose name they are in or when they were built up. This includes a wide range of pension types:

Workplace pensions – such as defined contribution (money purchase) schemes and defined benefit (final salary) pensions.
Private pensions – set up individually, including personal pension plans and SIPPs (Self-Invested Personal Pensions).
State pensions – while the basic State Pension can't be shared, the additional State Pension (such as SERPS or State Second Pension) can sometimes be taken into account or shared in certain cases. Any missing contributions in a basic state pension will also need to be considered as part of the overall financial assessment.
Overseas pensions – pensions held abroad may also be relevant, although they can be more complex to deal with.

What can affect your share of the pension when divorcing?

Several factors can affect how pensions are divided during a divorce. The court’s aim is to reach a fair outcome based on both parties’ needs and circumstances. This means pensions are not necessarily split equally. Key considerations that can influence your share include:

Length of the marriage – In longer marriages, pensions are more likely to be shared equally, while in shorter marriages, only the pensions built up during the relationship might be considered.
Pre-marital contributions – If a large part of a pension was built up before the marriage, this may reduce the share given to the other spouse.
Age and health – Differences in age or health may impact retirement needs and influence how the pension is split.
Other financial resources – If one spouse has other substantial assets or income, this could impact how much pension sharing is needed.
Children and future needs – The court may consider one party’s need to care for children or their ability to rebuild pension savings after the divorce.

How long after the divorce can I claim against my spouse’s pension?

You can only claim a share of your ex-spouse’s pension if it is dealt with as part of the divorce process by way of a financial order. If the divorce is finalised without a financial order in place, you may lose the right to make a claim later, depending on your individual circumstances. Pension calculations can also become more complicated if there is a significant period after the divorce, so it is important to deal with pensions at the time of divorce. However, there is no automatic time limit for bringing the claim so, unless the financial side of the divorce is formally resolved by the court, either party could potentially make a claim in the future. For the spouse with the greater pension provision, there is therefore a risk that pension assets continue to grow and then face a later claim.

If you’ve already divorced and didn’t sort out pensions at the time, you should seek legal advice urgently. It may still be possible to pursue a claim.

How can I protect my pension in a divorce?

Working with a solicitor who specialises in divorce and pensions is crucial, they can help ensure your pension is accurately valued and advise on the best strategy to safeguard your interests. You may negotiate a fair settlement that balances your pension with other assets or seek a pension sharing order that clearly defines how the pension will be divided.

Will divorce affect my retirement plans?

Divorce can significantly impact your retirement plans, as it often involves dividing valuable assets like pensions and savings. You may receive a smaller pension share than expected, or need to adjust your retirement age or lifestyle based on the financial settlement.

Additionally, if you have relied on your spouse’s pension as part of your retirement income, you will need to reconsider your long-term financial strategy.

Our experts specialise in divorce and pensions and can help you understand how the split will affect your retirement and guide you in planning for a secure financial future. We also work closely with our network of specialist financial planners who can help ensure you maximise your finances.

Will the pension split happen now, or when my spouse retires?

The timing of the pension split depends on the type of pension and the method used to divide it. With a pension sharing order, a portion of your spouse’s pension is transferred into a separate pension pot for you, this usually happens soon after the divorce settlement, so you gain immediate control over your share.

However, if a pension attachment (earmarking) order is used, you won’t receive anything until your spouse actually starts taking their pension benefits, meaning payments come later and depend on their retirement.

Why use our divorce pension plan solicitors?

Experts in complex pension structures - We understand the full range of pension schemes, from workplace and private pensions to SIPPs and final salary plans, so nothing is overlooked or undervalued in your settlement.
Focused on fairness and long-term security - We work to ensure a fair and practical outcome that supports your financial wellbeing now and into retirement.
Strategic negotiation with court-ready expertise - We aim to resolve matters constructively, Paul Linsell, Partner in our Family team is an accredited mediator offering mediation services, but in the rare situation court is needed, we are prepared. Our team combines smart negotiation with strong litigation experience to protect your interests at every stage.
Multi-disciplinary support under one roof - As part of a full-service law firm ranked by Chambers UK and The Legal 500, we work closely with in-house experts in tax, Trusts, wealth planning, and property law. This means we can address every aspect of your financial situation, however complex, and deliver seamless, joined-up advice during your divorce. We also have access to a wide network of expert financial planners and actuaries where they are required to assist with pensions on divorce.