Divorce and Pensions

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If you are going through a divorce, you may be concerned about what your financial future will look like.

Negotiating your financial settlement can be an uncertain and unsettling time, particularly if tensions arise.

We understand that your pension is likely to be important to you and we can help negotiate a settlement with your former partner that meets your future needs.

Having expert legal advice is crucial when negotiating your finances during a divorce. We will ensure you are fairly represented and protect your interests.

To speak to a member of our family law team about your pension during a divorce or to arrange an initial fixed fee consultation, please contact your local IBB Law office in Beaconsfield, Reading, or Uxbridge, or email familylaw@ibblaw.co.uk.

Meet the team

Zuher Makri
- - Zuher Makri
  - Senior Associate
Margaret Furniss
- - Margaret Furniss
  - Senior Associate
Ellis Whitworth
- - Ellis Whitworth
  - Solicitor
Emma Greenwood
- - Emma Greenwood
  - Support Manager
Amanda Melton
- - Amanda Melton
  - Consultant

Meet the team

How IBB Law Can Help You With Divorce and Pensions?

Pension Valuation and Division

Many pension administrators produce annual information about your pension, including a cash equivalent transfer value (CETV) for your pension fund.

However, this should not be taken as a direct valuation of your pension, as it may not be an accurate reflection of the pension’s value, and in some cases, it could be worth more.

Our specialist solicitors can advise you in relation to instructing experts who would value the pensions in the marital pot accurately to ensure the assets are divided fairly according to their true value.

Pension Sharing Orders

A Pension Sharing Order (PSO) is a court order that divides one spouse’s pension between both parties after divorce.

It allows a percentage of the pension to be transferred into the ex-spouse’s name, either into a new or existing pension scheme.

This provides a clean break financially, ensuring both individuals have retirement provisions. The order is legally binding and must be implemented by the pension provider.

If you would like to apply for a Pension Sharing Order, our solicitors can advocate for you during negotiations. We will work to secure a fair share, considering factors such as the length of your marriage or civil partnership, your age, future earning potential, and other relevant circumstances.

Pension Offsetting

Pension offsetting involves the spouse with the larger pension offering a percentage of another asset, for example, the sale proceeds of a property, to the spouse with smaller pension assets to allow for a fair division.

This allows the first spouse to keep their pension but also ensures the other party is fairly renumerated.

If you would prefer to offset your pension with another asset in order to keep it in its entirety, our solicitors can assist with the negotiations over what assets will be offered as a replacement and ensure that the final division is equal.

Pension Attachment and Earmarking Orders

Pension attachment and earmarking orders are court orders that allocate a portion of one spouse’s pension benefits to the other after divorce.

Unlike Pension Sharing Orders, these do not create a separate pension but instead require the pension provider to pay a percentage of the pension income, lump sum, or death benefits to the ex-spouse when they become payable. However, payments will stop if the recipient remarries or if the pension holder dies.

Pension attachment orders are less common but it does allow one party to continue to manage the growth of their pension, rather than dividing it. The best pension order for you will depend on your individual circumstances. Our solicitors can discuss the options available to you and help you decide which would work best for both parties.

International Pension Considerations

International pensions often involve complex legal and jurisdictional considerations. Our solicitors can help identify whether your overseas pensions can be divided under UK law, liaise with foreign pension providers, and ensure compliance with both UK and international regulations.

We can also help you negotiate fair settlements, considering currency fluctuations, tax implications, and enforcement challenges.

Our expertise ensures that pensions held abroad are properly accounted for, protecting your financial future and ensuring a fair division of assets across multiple jurisdictions.

Negotiating Pension Settlements

Negotiating your pension settlements is an important part of the divorce process to ensure a fair and legally sound division of assets.

Both parties should have the value of their pensions assessed, considering factors such as marriage duration, contributions, and future financial needs.

Our solicitors can help you establish whether Pension Sharing Orders, attachment orders, or offsetting agreements will be best for managing your assets, depending on your circumstances.

We will ensure you receive a fair settlement, securing long-term financial stability and helping you achieve a balanced division of assets for the future.

Common questions about pensions and divorce in the UK

If you are looking to protect your pension during a divorce, you should instruct a specialist solicitor at the earliest opportunity.

Obtaining a pension valuation and consulting a financial expert should be the first step to prevent undervaluation.

Our solicitors can then help you negotiate a fair settlement, considering factors such as your pension value, marriage duration, and future financial needs.

This may include using orders such as pension offsetting, pension sharing orders or attachment orders.

You may be entitled to a share of your spouse’s pension if you legally divorce but not if you separate without a legal process.

Pensions are considered marital assets and can be divided through pension sharing orders, attachment orders, or offsetting as part of the financial settlement. The division will depend on factors such as your marriage length, contributions, and future needs.

However, if you only separate without divorce, your pensions will remain with you unless agreed otherwise.

Seeking legal advice can help you understand your pension rights after separation and negotiate a fair settlement based on your circumstances and financial security.

To apply for a share of your ex-husband’s or ex-wife’s pension, you must include pensions in your financial settlement during divorce proceedings.

You can then apply for one of the following pension orders to divide your assets:

A Pension Sharing Order through the court which transfers a percentage of your ex’s pension into your name.
A Pension Attachment Order allows you to receive pension payments when they retire.
Pension offsetting, where you receive other assets instead of a pension share.

A solicitor can help you negotiate a fair settlement and ensure the correct legal procedures are followed to secure your pension rights after divorce.

To get a pension valuation for divorce, you should start by requesting a Cash Equivalent Value (CEV) from your pension provider. This figure represents the pension’s worth if transferred elsewhere and is used as a starting point in divorce settlements.

It is important to note that a CEV is not always an accurate reflection of the true value of your pension. For this reason, you should instruct a specialist solicitor who can interpret the valuation and negotiate a fair settlement, ensuring your assets are divided equally during the divorce.

At IBB Law, our experienced pension experts provide clear, strategic advice to help you secure a fair financial settlement when dividing pensions during a divorce. Pensions can be one of the most valuable assets in a marriage, and ensuring they are divided correctly is crucial for your future financial security.

Our specialist team will assess your unique circumstances and explain the different options available, including pension sharing, offsetting, and earmarking. We work with trusted financial experts to provide accurate pension valuations and ensure that your long-term interests are protected.

Whether negotiating a fair agreement or representing you in court proceedings, we offer expert guidance to achieve the best possible outcome. With many years of experience handling complex divorce matters, we will ensure your financial interests are protected for the future and help you to move forward independently.