Pension sharing on divorce

The number of pension sharing orders made by the court has decreased since the introduction of DIY Divorce and with the advent of the no-fault divorce law this year, things could get worse.

It is relatively straightforward to apply for a divorce online but it is extremely important to take legal advice about financial aspects of the marriage on divorce.

A divorce dissolves the marriage but if you own property, have savings or a pension, you also need to sort out financial issues.

If not, each party is open to a claim from their ex-spouse in future.

Pensions are an asset

Many people don’t know the value of their pensions – but often pensions are a large asset, sometimes the largest, within marriage.

A common mistake is to say each party retains their own pensions, without investigating the value of those pensions.

A pension sharing order means an amount from one party’s pension is transferred into a separate pot for the other party.

If there is a dispute as to the amount to be shared/how to divide, advice is often obtained from an actuary.

Reaching agreement

Once agreement on finances is reached, a financial order must be approved by the court before division of assets becomes legally enforceable.

A pension sharing order cannot be implemented unless it is part of the financial order following divorce.

Remember: Even if getting divorced online you still need to consider how financial assets from the marriage are to be divided and ensure pensions are considered as part of the overall financial settlement.

Always take legal advice from a specialist family solicitor