Pensions in divorce

For many couples, pensions are their most valuable asset after their home, yet they are often overlooked during divorce settlements.

If pensions aren't fairly divided, it can be hard for divorcees to build up sufficient retirement savings. Research by Now Pensions and the Pension Policy Institute in 2026 found that divorced women typically have around £400,000 less in pension savings than divorced men.

Separate research from Interactive Investor shows that just 25% of divorcees expect more than £100,000 in their pension by retirement, compared with 52% of married people.

• Find out more: how much will I need to retire?

Am I entitled to a share of my partner's pension?

Pensions should be considered as part of the financial settlement agreed on before a divorce is finalised.

As part of a financial disclosure, the wealth and assets built up during the marriage will be reviewed. 

Different factors will dictate how a couple’s wealth is divided, including:

• How many children there are and who they will live with
• Wealth and sources of income for each individual 
• The age of health of both parties. If someone is older and in poorer health, they may have a right to a greater share
• The length of the marriage
• The financial and caring contributions each party has made - the former won’t necessarily be given greater weight than the latter

How pensions can be divided in divorce

These are the different ways in which you can split pensions during a divorce:

• Pension sharing - a pension sharing order is where part of one person's pension is transferred to the other so that both parties have an equal share. This is the most common way of dividing pensions in divorce. 
• Pension offsetting - this is where each party retains their own pension, but the spouse with the lower pension receives a share of other assets (e.g. equity in a property or a lump sum) instead. This can involve complicated calculations around the market value of the pension. 
• Pension attachment (known as ‘earmarking’ in Scotland) - this is where a share of one partner's pension benefits is paid to the other person at the point an income is taken from the pension. Payments cease on the death of the former spouse. This option is rarely used now for that reason. In Scotland, this arrangement only applies to lump sum payments, rather than pension income. 

Things are usually more complicated if you're divorcing when retired. For example, If your share of your ex-spouse's pension comes from benefits they're already receiving as income, you won't be able to take a tax-free lump sum from it when you retire.

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Reaching an agreement

Final arrangements if you’ve reached an agreement

In England, Wales and Northern Ireland, even if you’re able to reach an agreement with your ex-spouse, a court still needs to approve it before it’s legally binding. This will mean that the agreement can be enforced if need be.

In Scotland, a pension sharing order can often be finalised by adding a written copy to the Register of Deeds. However, if you've chosen an attachment order (known as a pension lump sum order), a court will need to approve this. 

The next stage is to send your written agreement to the courts, along with information about all your finances and the court fee. A judge will then review your agreement and either approve it or ask for a change.

Final arrangements if you’re unable to agree

If there is no agreement with the other party, or it’s not safe for you to deal with them directly, you can ask the court to decide for you. This is often known as defending the petition.

A review of all your finances by the court will follow and it will tell you how you should split them, based on what it believes is fair. 

The court may ask a pensions on divorce expert, often an actuary or a highly qualified financial professional, to value all your pensions and suggest a fair division.

What about the state pension?

The new state pension (which applies if you reach state pension age on or after 6 April 2016) can’t be shared on divorce. 

However, if your state pension includes a 'protected payment', this could be shared. A protected payment is an amount paid on top of the standard weekly rate of state pension to reflect any additional state pension you built up. 

If you reached state pension age before 6 April 2016, your additional state pension could be shared (this is the amount paid on top of any basic state pension you get).

Where to get professional help

Many couples who don’t take professional advice do not discuss pensions as part of their separation and this can lead to disagreements late in the day as the financial settlement is drawn up.

There are several ways in which you can get assistance:

• Mediation - a mediator can help you and your ex-partner agree on how to split money and property, without taking sides. It will usually be quicker and cheaper than hiring a solicitor. You will need to attend a mediation information assessment meeting (MIAM) before you start mediation.
• Legal advice from a solicitor - a solicitor will help you set up the right agreement to formalise sharing of pension assets in divorce. If there is a dispute about a your finances, using a solicitor might be more effective than trying to sort it out directly. A solicitor can be located in England and Wales on the Resolution website or via the Family Law Association in Scotland. 
• Free guidance - government-backed MoneyHelper offers a free pensions and divorce or dissolution telephone service. Appointments are available to chat through your pension and divorce options (including options for splitting or sharing pensions).