
Divorce and Pensions by Emma Downey
Divorce and pensions – I must admit this has been on my mind recently…
Many going through a divorce or separation, often focus on the obvious things: the family home, savings, etc. But there’s one major asset that many people either forget, ignore, or assume isn’t worth much attention: the pension.
Let me ask you:
• Have you thought about what your income will be when you retire?
• Can you manage on that amount — or will it leave you short?
• Is it fair if one of you has a secure retirement and the other doesn’t?
These questions matter more than you might think.
In many divorces, the pension can actually be one of the most valuable assets. It not always easy to understand its true worth. It’s not just about the size of the pot you see on paper — it’s about what that pension will provide in future income, how secure it is, and how long it’s expected to last.
Too often, pensions are left out of the financial remedy process completely — or one partner says:
“Just keep yours, and I’ll keep mine,” without realising that they’re not equal.
This is where a common misconception creeps in:
“A pound is a pound — right?”
Actually, no. £1 in cash today is not the same as £1 in a pension pot. Pensions can grow over time, offer different types of benefits, and be treated differently for tax purposes. What looks like a fair split now could be anything but fair once you retire.
So what can you do?
I get it — involving another professional can feel like a bit of a headache. It’s one more thing to arrange and people often worry about the extra cost. But the reality is, getting advice from a pension expert can save you from serious long-term financial unfairness.
In divorce cases, a pension expert can:
• Assess the true value of both parties’ pensions
• Explain the different types of pension schemes (some are worth more than others even if the numbers look similar)
• Recommend a fair way to divide the pension
• Help ensure you both have a secure financial future, not just one of you
Without a pension expert’s input, one spouse may end up with much more retirement income than the other — and that often only becomes clear years down the line, when it’s too late to fix.
Don’t make assumptions
Before you make any decisions about pensions in your divorce, stop and think:
• Have you got the full picture of all the pensions involved?
• Do you know what each one is really worth, not just on paper?
• Have you considered how those pensions will actually affect your retirement income?
• Have you had proper advice before agreeing to anything?
Summary
So, in summary, getting divorced is stressful enough, and I know it can be tempting to just get things sorted and move on. But when it comes to pensions, cutting corners can cause problems that only show up years later — when it’s much harder (or impossible) to fix them.
Written by Emma Downey – Head of Family Law – WTW Solicitors