Pensions and divorce

What happens to pensions if we divorce?

For many couples, pensions might be the main asset aside from their family home.

A pension can only ever be in one person's name (that of the 'member spouse'), but there are three main ways in which the English court might deal with a private (i.e. non-state) pension as part of a divorce-settlement. Which options are available and which is regarded by the court as fair in the circumstances will depend on the individual case:

  • A pension-sharing order.  This, at the time of the divorce, transfers a percentage of the pension benefits away from the member spouse's pension and into a separate pension for the other spouse.
  • A pension attachment/earmarking order.  This keeps all of the pension in the member spouse's name but requires the pension scheme to make a payment or payments to the other spouse when the pension become payable.
  • Offsetting.  The non-member spouse does not receive any pension benefits but receives other assets instead.

Sometimes it is necessary to obtain input from an actuary to help inform what pension order is fair and appropriate. This depends on the type of pension and the parties' ages, amongst other things.

Foreign pension schemes will not always recognise an English pension sharing order and so it is particularly important to take advice in respect of foreign pensions on divorce.

In these FAQs and answers, we use 'England' as a shorthand for 'England and Wales' because England and Wales share a single legal system. Scotland, meanwhile, is a different legal system and has different rules for many aspects of family law.

We have also chosen to talk about 'marriages' most of the time (which may be between either an opposite or same-sex couple). Unless we say otherwise, what we have said is also true of civil partnerships (which may also be between an opposite or same-sex couple).

These FAQs (and our website more generally) contain general information based on English law as it stands at the date of publication, but they do not constitute legal advice, nor are they tailored to any couple or family's particular circumstances. Whilst we endeavour to ensure it is accurate and up to date, website users should seek appropriate legal advice before taking or refraining from any action based on the content of the website. We would, of course, be willing to assist with this, and you can contact us here.

Any pricing information is similarly general. Our clients' relationship with us is governed by the terms of the engagement letter sent to them at the beginning of their instruction.

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Get in touch

Our team of divorce law solicitors are on hand to help and support couples who are thinking about divorce.  Speak to one of our experts confidentially by phoning Sarah on the number below, or complete our online enquiry form and we will contact you directly.

Divorce and family services

+44 20 7597 6384 Email Sarah

More finance FAQs

What financial orders can the court make upon a divorce? How are assets split as part of divorce? What will happen to our family house if we divorce? Will one of us have to pay spousal maintenance to the other following a divorce? If I am paying spousal maintenance what happens if my ex-spouse starts a new relationship?
Does one parent have to pay child maintenance to the other following separation? Are inherited assets or assets gifted from family protected from divorce? Are assets held in a trust protected in a divorce? If I am getting divorced abroad, can I still make financial claims in England? Do we have to go to court to resolve our financial issues upon divorce?
Do I have to give financial disclosure as part of divorce? How do I find out if my spouse is hiding assets as part of divorce? Are pre-nuptial agreements legally binding in England? What happens to assets I receive in the future after a divorce?