Pensions in Divorce: How to Secure a Fair Pension Split.

Divorce isn’t just about ending a relationship; it’s about dividing two lives that have been financially intertwined for years. Most people focus on the home, savings, or possessions. Yet one of the most valuable assets is often overlooked: pensions. 

Pensions can sometimes be worth as much as, or even more than, the family home. Ignoring them could leave one partner with a far less secure future. 

In this Insight, we explain how pensions in divorce are divided, what happens to pension contributions made before or after marriage, and why specialist legal advice is essential to protect your long-term financial wellbeing.  

Why pensions matter in divorce 

When a couple divorces, pensions are often one of the most significant yet misunderstood assets. While people tend to focus on tangible things like property or savings accounts, pensions represent long-term financial security. Pensions ultimately determine how comfortably each person lives in retirement. 

Because pensions are not immediately accessible, they can seem less urgent to address during settlement discussions. However, overlooking them can lead to serious financial imbalance later. A spouse who sacrificed career progression to raise children or support the family may have built up little or no pension of their own. Ignoring pension assets can leave them vulnerable in later life. 

Courts recognise that pensions are part of the wider financial picture and must be considered alongside other assets. Including pensions early in negotiations helps ensure both parties have a fair foundation for their future. Failing to do so can mean one person faces hardship, while the other benefits from years of pension growth they built together. 

A fair divorce settlement is not always just about splitting what you have now. It is also often about making sure both partners can have stability and dignity in retirement. Your pension plays a central role in achieving that.   

How pensions are divided 

When a marriage ends, there are several ways pensions can be divided: 

• Pension sharing: dividing one or more pensions so that each person has their own independent fund. 
• Pension attachment (earmarking): arranging for one spouse to receive part of the other’s pension income or lump sum when it is paid. 
• Offsetting: one spouse keeps more of another asset, such as the family home, instead of taking a share of the pension. 

Each option has pros and cons. The right approach depends on the pension type, the couple’s ages, and their long-term financial needs. 

The court does not automatically split pensions 50/50. It considers when and how each pension was built up, what each person contributed, and whether the funds form part of the “matrimonial pot”. 

A pension built up during the marriage can usually be shared. However, benefits gained before or after the marriage may be handled differently. Understanding this distinction is crucial before agreeing to any settlement.   

When a pension can (and can’t) be shared 

The court examines when and how the pension was accrued. Pensions built up during the marriage are generally part of the “matrimonial pot”, meaning they can be shared. 

Benefits earned before marriage or after separation may be treated as “non-matrimonial”, unless fairness or need suggests otherwise. 

The Supreme Court’s decision in Standish v Standish confirmed that non-matrimonial property is not automatically excluded. It can become “matrimonialised” if mixed into the family’s finances, for example, where contributions continued during a long marriage and supported shared retirement plans. 

This approach is still nuanced, though, as in Standish v Standish, the court only considered 25% of the assets to be matrimonialised. 

How do judges work out how to split pensions in a divorce? 

Judges aim for fairness, not rigid calculations. Imagine a couple married for 18 years. One spouse works in the public sector with a defined-benefit pension. The other focuses on raising their children, contributing a small amount to a private scheme.  

Although some pension value pre-dates the marriage, most growth occurred during it. A straight-line split might be unfair. Especially as one spouse focused on raising the children, therefore missing out on employer contributions towards a pension. 

Equally, if both partners rely on pension income for retirement, the court may decide not to exclude any portion, even if part pre-dates the marriage. 

These nuances highlight why expert valuation and legal advice are vital before finalising your pension split in divorce. 

Does my partner get my state pension in a divorce? 

In most cases, your partner will not automatically receive your state pension if you divorce. The basic state pension cannot be shared or divided between spouses. However, the court may take additional state pensions or State Second Pension (S2P) into account.  

In some circumstances, these can be shared through a pension sharing order or offset against other assets as part of the overall financial settlement.  

It is important to check your National Insurance record with the Department for Work and Pensions to understand your entitlement and how divorce might affect your state pension. 

Early specialist advice saves time, stress, and costly surprises later. 

How can I protect my pension in a divorce? 

If you are concerned about protecting your pension during divorce proceedings, the best starting point is full financial disclosure.  

Hiding or undervaluing pensions can damage credibility and lead to an unfair outcome. Instead, collaborate with a specialist solicitor who understands how to assess pensions in divorce and can ensure accurate valuations. 

A Pensions on Divorce Expert (PODE) can give you an independent valuation, allowing you to make informed negotiations. Depending on your circumstances, it may be possible to agree a pension split in divorce that preserves a fair share of your future income, or to offset part of your pension’s value against other assets such as property or savings.  

Taking early legal advice is key to protecting your pension rights and achieving a settlement that safeguards your long-term financial security. 

Do I need a pension expert during a divorce? 

In many cases, yes. A pensions expert can assess the true value of each pension and provide a clear picture of what a fair division looks like.  

Their report helps the court and your solicitor understand the long-term financial impact of different settlement options, ensuring neither party is left at a disadvantage in retirement.

While a PODE is essential for complex or high-value schemes, their input is also increasingly common in more straightforward cases where expert calculations can clarify how to achieve a balanced and fair outcome. 

Getting the pension order right 

A pension sharing order is a court document setting out exactly how pensions are divided between spouses after divorce. It ensures the transfer is legally binding and enforceable. 

Once an agreement is reached, accurate paperwork is essential. A pension sharing order only takes effect after the final divorce order. Schemes require precise wording before they will implement it. 

Errors or missing annexes can delay transfers for months or even invalidate them. Many providers insist on reviewing a draft before it is sealed, which is another reason to work with an experienced solicitor. 

It is also vital to meet deadlines. Most schemes must receive the sealed order within four months of issue. Missing that window could mean starting again. 

A correctly drafted pension order protects both parties and secures your future income. Get it right the first time, and it should never need revisiting. 

How Britton and Time can help 

Every client’s financial circumstances and every pension scheme are unique. Whether you’re seeking a clean break or a fair division after a long marriage, our specialist solicitors guide you through the process. We’ll ensure the accurate valuation of your pension, draft water-tight orders, and secure your financial future.