Pensions are often the largest asset after the family home, yet many people worry about losing their retirement savings or misunderstand how pensions are divided. The process is not always straightforward, and the outcome depends on your circumstances, the length of your relationship, and the needs of both parties.

The Legal Framework

In England and Wales, pensions are considered part of the “marriage pot”—all assets to be divided on divorce. The Matrimonial Causes Act 1973 gives courts wide discretion to achieve fairness. Pensions can be split in three main ways:
Pension Sharing Order: The court divides the pension at the time of divorce, creating two separate pots.

Pension Attachment Order: A share of the pension is paid to the ex-spouse when the pension holder retires (less common).

Offsetting: One party keeps more of the pension, while the other receives more of another asset (such as the family home).

What Courts Consider

Courts look at the value of all assets, not just pensions. They consider:
-The duration of the marriage and any period of cohabitation before marriage.
-The age, health, earning capacity, and future needs of both parties.
-The total value of pensions, including workplace, private, and sometimes state pensions.
-Whether the pension was accrued before, during, or after the marriage.

Long marriages often mean all pensions are considered, even those built up before the wedding. In shorter marriages, only pensions accrued during the relationship may be included.

Common Misconceptions and Myths
Myth: Pensions are always split 50/50. In reality, the split depends on needs, contributions, and the overall asset pool.

Myth: Only pensions built up during marriage count. Courts may include pre-marital pensions, especially in long relationships.

Myth: State pensions are always ignored. Some elements of state pensions can be considered, but most focus is on private and workplace schemes.

Pitfalls and Things to Consider
Not valuing pensions properly: You’ll need a Cash Equivalent Transfer Value (CETV) from your pension provider. Sometimes, an expert report is needed for complex schemes.

Overlooking offsetting: Trading pension for other assets can be risky if you don’t understand the long-term impact.

Failing to consider future needs: Think about retirement plans, health, and whether a clean break is possible.

Practical Steps Forward
Get a pension valuation: Request a CETV from each provider. If you have multiple pensions, gather all statements.

Gather evidence: List all assets, income, and debts. Be clear about your needs and future plans.

Propose a fair split: Consider whether pension sharing, attachment, or offsetting suits your situation. If you disagree with your ex’s proposal, explain why and offer alternatives.

Consider a clean break: A pension sharing order can allow both parties to move on without ongoing financial ties.

Wider Context

The court’s approach is shaped by recent cases, such as Standish v Standish [2024] UKSC 89, which clarified that sharing and compensation principles apply. The court will look at the whole financial picture, not just the pension, and aim for fairness based on needs and contributions.

Conclusion

Pensions are a vital part of divorce settlements. The split is rarely automatic and depends on your circumstances, the length of your relationship, and your future needs. Thousands self-represent successfully every month, saving significant legal fees by preparing carefully and understanding the process. Get your pension valued, gather your evidence, and be ready to explain your position. With preparation, you can protect your retirement and achieve a fair outcome.