Pension Claims on Divorce Solicitors

Your pension can be one of the highest-value assets you individually own. Our divorce and pensions solicitors are experienced in dealing with financial settlements upon divorce and civil partnership dissolution and can advise you on how to deal with pensions.

Legally, you and your spouse must divide your money and assets fairly upon separation, enabling both of you to move on with your lives in financial security. This includes individually owned assets such as pensions.

Our family department can advise you on the most beneficial option available to you. If there is a significant difference between the spouses’ pensions, then there are various ways to deal with pensions, known as offsetting, pension sharing, and pension attachment.

In order for our legal professionals to advise on what would be best for you, you will be advised to obtain details on your pension. Our family department or a pension expert will consider the value of your pension fund. Pensions can be extremely complex and will need to be considered as part of the entire division of financial assets to ensure a fair settlement overall.

Our family department can also advise you on whether it is necessary to instruct a pension expert to obtain a pension actuaries report in your particular circumstances.

Get in touch with our divorce and pensions solicitors

To speak to our divorce and pensions solicitors in West Sussex and Hampshire, get in touch with our family lawyers by giving us a call at one of our local branches in Chichester, Fareham, Havant or Petworth. Alternatively, please fill out our online enquiry form for a quick response.

How our divorce and pensions solicitors can help

Pension offsetting

Pension offsetting involves you retaining your pension by substituting another asset of equal value. This is common if one party wishes to retain the family home.

Pension offsetting can allow you and your former spouse to achieve a “clean break” once your divorce or dissolution is complete. A clean break divorce or dissolution is where you are able to fully divide your assets so that there are no ongoing financial obligations between you.

This is a positive for many separating couples who want to move on with their life without any further involvement from their former spouse.

Pension sharing

Pension sharing involves your spouse having a portion of your pension assigned to them. This portion will usually be transferred out of the pension into a new scheme, so both parties end up with individual pension funds.

To implement pension sharing, you must get a Pension Sharing Order as part of your divorce or dissolution proceedings. The court will award a proportion of the pension to the non-policyholder spouse.

The exact proportion will depend on your individual circumstances and your overall financial resources; it will not necessarily be a 50/50 split.

This option can also allow separating couples to achieve a clean break quickly because the pension provider is legally obliged to split the pension within a few months of receiving the Pension Sharing Order. Once the pension is officially split, the parties have no ongoing pension-related obligations to each other.

Pension attachment

Pension attachment involves the court awarding lump sum payments, periodical payments or secured periodical payments against the pension. However, the spouse awarded can only receive their share once the policy holder spouse starts drawing their pension.

This option does not allow separating couples to achieve a clean break. The non-policy holder spouse will receive an entitlement to the policy holder spouse’s pension which may not come into fruition for many years.

Once the policy holder spouse starts receiving their entitlements, the non-policy holder spouse will receive their entitlements directly from the pension fund, often in the form of ongoing payments.

For this reason, many couples prefer pension sharing over pension attachment, although it may still be the best option for some couples. We can talk you through the different options and help you establish which method is right for you.

Why choose Glanvilles for help with pension claims on divorce matters?

At Glanvilles, we have years of experience helping clients with their pension claims on divorce matters.

Our solicitors hold the Law Society’s Family Law Advanced accreditation which is only held by firms with recognised expertise in specialist areas of family law, including cases involving complex finances. Our family team are members of Resolution, including qualified collaborative lawyer, Charlotte Woodhouse, and we have a strong track record helping individuals come to constructive, positive agreements wherever possible.

As a firm, we guarantee that your time working with us will be supportive and professional. We hold the Law Society’s Lexcel accreditation in recognition of our outstanding standards of client care, and can promise our total commitment.

Frequently asked questions about pension claims on divorce

If I divorce my husband or wife, am I entitled to their pension?

In many cases, you are indeed entitled to a share of your spouse’s pension as part of the total divorce settlement. Pensions are typically considered a matrimonial asset and are, therefore, divided between both parties, particularly if they were consistently contributed to over the course of the marriage.

The extent of your entitlement will depend on factors such as the length of the marriage, the value and type of the pension, and each spouse’s individual financial circumstances. Our divorce and pension experts will provide advice tailored to you, ensuring that you understand your divorce pension rights from the outset.

What happens financially when you get divorced?

During a divorce, all matrimonial assets, including property, investments, savings, and pensions, must be considered for fair division. Courts aim to reach a fair outcome, but this does not always mean a perfectly equal split. Instead, the financial agreement will reflect matters such as individual income, future financial needs, earning capacity, and children.

Pensions are oftentimes one of the most significant financial assets in a marriage, and as such, obtaining professional pension advice in divorce is crucial. Taking control of pensions in divorce settlements can protect both parties’ long-term financial security.

How are pensions valued in a divorce?

In a divorce, pensions are valued using the Cash Equivalent Value (CEV), which represents the pension’s worth if it were transferred to another provider. However, the value does not always reflect the true value of pension benefits, particularly for defined benefit schemes such as final salary pensions.

A divorce and pensions expert can review CEVs and make sure that all of the relevant factors such as tax implications, survivor benefits, and retirement age are taken into consideration. Correctly valuing pensions during divorce is crucial for the fair division of assets.

How is a pension split in a divorce?

There are a few ways to manage splitting pensions in divorce circumstances, including:

A Pension Sharing Order, which is the most common method and allows one party to receive a share of the other’s pension through a separate pension plan.
Pension offsetting, where the value of a pension is offset against other marital assets, such as the home.
A Pension Attachment Order, which allows one spouse to receive pension benefits once the other retires.

It is crucial that you get guidance from a pension on divorce expert to explore each option available to you to ensure you receive a fair pension divorce settlement. Our expert divorce financial settlements solicitors can provide practical advice on protecting your pension during a divorce.

How to protect your pension in a divorce?

If you want to protect your pension during a divorce, it is important that you first get clear, accurate valuations of all relevant pension assets. Working with a divorce and pensions expert to discuss all of the options available to you is the next step, ensuring that you understand the implications of offsetting or sharing.

Depending on your circumstances, you might also have the opportunity to establish a pre or post nuptial agreement that protects your pension in the event of a divorce. Our divorce and dissolution solicitors can advise you no matter how contentious matters have become.