Pensions and Divorce

Pensions on Divorce

Pensions can sometimes be overlooked by divorcing couples in divorce settlements. However, in some cases, pensions may be one of the most valuable assets available to you and your spouse (sometimes worth more than the family home). Therefore, it is essential pensions and divorce area part of and included in the asset schedule. They should always be properly considered as part of the financial settlement.

Treatment of Pensions

There are a number of ways that pensions can be treated within a divorce situation. The main claims (there are other less used options) are as follows:

Pension Sharing Orders are only available for divorcing couples. For the pension sharing order to take effect, you will need to have a final order (decree absolute). As well as a Court Order (a Consent Order) which has been approved and stamped by the Court.

The Value of Pensions

Pensions are complex assets to evaluate. Therefore, we believe it is important you obtain advice from a pension expert (which we would organise). To ‘lift the lid’ on the pension scheme and establish the best way to treat pension in your particular case. 

Some people wish to shortcut the process (due to additional cost and potential delay). They simply agree to divide the available pension funds. On the basis of an equalisation of Cash Equivalent Value (CEV) – also known as the fund value.

Equal Amount?

However, if you simply equalise the available funds values between you, this does not necessarily mean you will receive the same amount of pension. This is due to the following (non-exhaustive list of reasons):

A pension actuary take all of the above into account  as well as other factors. They give advice as to how to achieve the desired outcome (such as equality of pension income). Rather than simply dividing the fund value equally, which may not achieved the desired outcome. 


If you wish to discuss any of the above issues in further detail, please contact our family law team to arrange an appointment.

In view of the fact all of our circumstances are different, it is always important to seek advice from an experienced family law specialist. To discuss your circumstances and consider the different options available to you.

At Hart Reade, all of our family law solicitors are members of Resolution. Which means we are committed to resolving matters by agreement and in a non-confrontational manner.

We can provide you with a wealth of information, advice and support. That will assist you during what can be a difficult time. If you wish to speak to any of the family law team, please call us on 01323 727321, or alternatively please complete the contact form below.

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Please note that this article does not constitute legal advice. You should always speak to a legal professional to discuss your circumstances and consider your options.