What's Inside This Guide?

Our pension division guide covers:

• Why pensions matter Often the biggest asset in a marriage
• How to value your pension Understanding Cash Equivalent Transfer Values (CETV)
• Pension sharing Creating separate pension pots for each spouse
• Pension offsetting Trading pension value for other assets
• Common mistakes What people get wrong about pensions in divorce

Why Pensions Are Often Overlooked

Pensions feel abstract and distant, especially compared to the family home or savings you can access now. But for many couples, pensions represent decades of retirement savings and can be worth hundreds of thousands of pounds.

Ignoring pensions in your settlement can leave one party - often women who took career breaks - facing poverty in retirement while the other has a comfortable pension pot.

• Pensions are often the largest asset in a marriage
• One partner may have much larger pension than the other
• Career breaks for childcare affect pension accumulation
• Pension division is separate from other asset division
• Proper pension valuations are essential

Your Three Options for Pension Division

1. Pension Sharing: The court orders a percentage of one pension to be transferred to create a separate pension pot for the other spouse. This creates a clean break.

2. Pension Offsetting: One person keeps their whole pension, but the other receives a larger share of other assets (like the house) to compensate. This requires accurate valuations.

3. Pension Attachment: One spouse receives a percentage of the other's pension when it's paid out. This is rare and creates ongoing financial ties.