Understanding Pensions in Divorce
Pensions are often one of the most valuable assets in a marriage, providing income for retirement in a tax-efficient way.
Due to their significance, pensions can be a major point of dispute when a relationship breaks down.
Seeking expert legal advice is essential to ensure a fair division of pension assets on divorce.
Legal Framework for Pension Division
The court has two primary orders it can make in relation to pensions:
- Pension Sharing Orders
- Pension Attachment Orders
A Pensions on Divorce Expert (PODE) may be instructed to provide specialist advice on pension division and financial settlements.
Pension Sharing Orders
A pension-sharing order divides pension funds at the time of divorce or dissolution, allocating a percentage to each party to ensure equality in pension capital or income.
This is the most commonly used approach for pension division.
Pension Attachment Orders
Pension attachment orders require a pension scheme to pay a portion of monthly pension payments or a lump sum to the other party.
However, these orders have several drawbacks:
- The court cannot enforce continued contributions to the scheme.
- The court has no power to dictate when the pension holder must retire.
- If the pension holder dies before retirement, the recipient’s entitlement may be lost.
- Pension attachment orders do not provide a clean break, which is usually preferred by the court.
Due to these limitations, pension attachment orders are rare and require careful legal consideration.
Pension Offsetting as an Alternative
Pension offsetting allows one party to retain their pension while the other receives a greater share of non-pension assets.
This may be suitable if the pension includes valuable commercial properties or if a party wants immediate access to funds. However, pension offsetting can be complex, requiring expert financial input to determine the true value of pension assets.
Taking a Lump Sum from Your Pension
Following a pension sharing order, you may need to withdraw a lump sum to support your post-separation financial needs.
While this is possible under pension legislation, there may be tax implications. It is crucial to seek financial advice before making any decisions.
Pensions and Final Divorce Order
Once your divorce is finalised, you lose entitlement to widow’s or widower’s rights and any pension benefits from your former spouse. This highlights the importance of securing a pension order early in financial settlement discussions.
Types of Pension Schemes
At Myerson, we regularly advise on a wide range of pension schemes, including:
- Final Salary Pensions - Often found in the public sector and older private sector schemes, these provide a guaranteed income for life.
- Career Average Revalued Earnings Pensions - Common in public sector roles, these schemes calculate pensions based on career earnings rather than final salary.
- Public Sector Pensions - Covering NHS, police, teachers, and armed forces pensions, which often have unique complexities.
- Defined Benefit Pensions - Providing fixed benefits based on salary and service length.
- Defined Contribution Pensions - Where retirement benefits depend on contributions made and investment performance.
- Self-Invested Personal Pensions (SIPPs) - Offering flexibility in investment choices but requiring careful management during divorce settlements.
- Small Self-Administered Schemes (SSASs) - Typically used by business owners, requiring specialist advice for fair division.
- Occupational Pensions - Employer-sponsored pensions that vary widely in terms of benefits and regulations.
Our team works closely with financial advisers, pension actuaries, and forensic accountants to ensure a comprehensive understanding of the financial impact of divorce on your pension.
We take a tailored approach to each case, ensuring that the pension division aligns with your financial goals and long-term security.
Pensions and Divorce FAQs
How much of my pension will be considered by the court?
The total value of pensions accumulated by each party is taken into account. This includes all pensions, not only those held before marriage or civil partnership.
In certain situations, you might be able to modify the financial settlement to exclude pensions accrued before the marriage, including any time lived together without interruption that seamlessly transitioned into marriage or a civil partnership.
What happens to our pension if we divorce after retirement?
If you or your ex-partner are retired during your divorce and currently receive pension payments, those pensions can still be divided.
However, your options for managing these pensions may be limited, as you cannot withdraw a lump sum from a pension that is in payment or one that has been converted into an annuity.
Why Work With Our Family Team?
- Our specialist family law solicitors are experts in complex, high-value divorce, and family disputes.
- Our family law solicitors are recognised by the Legal 500.
- Our family team are all members of Resolution, the largest organisation of family lawyers in the UK, and are dedicated to dealing with matters in a non-confrontational and constructive way.
- Our team were shortlisted for the family law firm of the year (North) and financial remedies team of the year (National) at the Lexis Nexis Family Law Awards 2022.
- Our team work closely with other departments internally, including property, employment, corporate and commercial lawyers, to ensure that your financial needs are protected comprehensively.
- We provide a partner-led service to ensure you receive the very best legal advice and support for your family law issues.
- We have a large team of expert solicitors and can meet your deadlines.
- We are a full-service law firm operating from a one-site office, which means our teams communicate effectively and efficiently.
- We use the latest technology to ensure that we are working as efficiently. Geographical distance is no bar to us from providing excellent client service.
- We provide regular legal updates via our blogs, social media and local radio appearances.
- Look at the Myerson Promise for further benefits of working with us here.
- With our MSI Global Alliance Membership, we can connect you to trusted advisers in 100+ countries who can provide international legal advice for individuals and families.
- We assist families throughout England and Wales, with strong local expertise in Cheshire, Altrincham, and Manchester.
When you call our Family team, you will speak directly to a solicitor who can give you clear, informed advice from the outset. At Myerson, we pride ourselves on being accessible, approachable, and responsive, making sure you get the support you need when you need it most.
Testimonials
Mrs S, Liverpool
I went to Myerson and I could not have found a better, and more welcoming firm of solicitors. As well as their professionalism, Myerson offer charming surroundings, enhanced by friendly and helpful reception staff.
Mrs T
It was so wonderful to meet the Myerson Family Team. The whole experience felt relaxed and completely free from pressure, and everything was explained clearly and in layman’s terms, which was incredibly important to me during such a difficult time. I left feeling truly heard and respected, not just like another case in a system. Brittany made me feel seen as a person, and that meant everything to me.
Mr. H
Fantastic service from Sarah Whitelegge and Nichola Bright. Both highly knowledgeable, experienced and approachable dealing with all queries and concerns in a timely and professional manner.
Mrs P., Northwich
Jane Tenquist remained calm and determined throughout. Her professionalism and knowledge of divorce law is beyond reproach. Jane gave me support at a time when I needed it most and from that the strength and confidence to fight for what was rightfully mine. I am very grateful to Jane and I would not hesitate in recommending her to anyone who is in need of a Divorce Lawyer.
M A, Urmston
From start to finish everything done by Myerson was perfect. Nothing was any trouble, no matter how many times I contacted them over matters.
Mr L.
Did not have any issues that I had not thought had been dealt with efficiently or effectively. Would recommend to others.
Miss W., Altrincham
The Solicitors at Myerson were really helpful and dealt with my case really quickly. They kept me updated throughout and the whole process was very smooth, thank you!
Mr P., Stretford
It’s been a pleasure working with you. Your approach has been a breath of fresh air.
Mrs F., Altrincham
Very friendly professional service shown at all times. It made a huge difference to see a smile greeting you at those meetings; and a friendly voice on the end of a phone when your world seems to be crumbling around you.
Mr F, Heald Green
Excellent service. I would not hesitate in recommending Myerson. Nichola Bright was outstanding! Nothing was too much trouble for her.
Mr J., Rixton
Myerson Solicitors conducted my business in a highly professional manner. I was consistently kept informed of progress and any questions I had were answered in a timely manner.
Mr S, Warrington
I found Jane Tenquist to be both very knowledgeable, professional and easy to relate to. I would have no hesitation in recommending Jane or Myerson.
Mr D, Knutsford
An outstanding service with thoughtful and relevant advice given throughout. Highly recommend.
Mrs F, Altrincham
I would certainly recommend Nichola Bright. She showed empathy and understanding throughout the whole process. She is a very professional and caring solicitor.
Legal 500, 2021
An excellent matrimonial department within a larger firm, enabling the matrimonial team to harness advice on commercial matters in the drop of a hat.
Legal 500, 2021
The team is headed by Jane Tenquist; her ability to listen, knowledge of this area of law, deciphering relevant key information critical to the matter and progression is highly commendable. Jane’s team are equally strong in these skills and together they work excellently. As a client I have felt to be in a very safe set of hands and I say thank you for your hard work.
Legal 500, 2021
As a client of the practice I have experienced positive and practical guidance from my first introduction. Filing for divorce following 35 years of marriage was a very traumatic life event but I have been supported and guided throughout the whole process. My wishes were listened to and then legal advice given provided as to my various actions.
Legal 500, 2021
They have an approachable, honest manner that is supported by extensive knowledge and experience. Nichola Bright offers her clients the feeling of confidence in her advice as well as her understanding and appreciation of the challenges they are facing. She has the human touch that is so valuable to clients.
Legal 500, 2022
They ensure that relevant experts are brought into the process when matters are outside the remit of the lawyers. This ensures clients get the best possible advice.
Legal 500, 2022
The individual team members are thorough in their approach to dealing with client enquiries and fully understand the need to ensure outside experts like myself are brought into the process when required. This gives clients the reassurance that all avenues have been explored when dealing with their case.
Jill
A complex and challenging case. However, Gemma constantly eased our anxiety and worries with her sound advice and calm, swift responses to our endless queries. She was always very professional and knowledgeable, able to explain clearly and concisely in both legal terms and layman's terms when we struggled to understand some of the complexities of the case. Always friendly and approachable, I would recommend her in a heartbeat. As a company they were very fair with their fees for which we are very grateful. A great service all round.
I wanted to extend a heartfelt thank you for the unwavering support and assistance you've provided thus far in handling my case. Today, our barrister delivered an outstanding performance, which fills me with optimism that we will continue to persevere with this level of dedication until the conclusion. Your assistance has been invaluable to me, especially during times of mental strain. Your unwavering support has truly made a significant difference.
Mr. Ahmad
I want to express my sincere thanks to Jane for her outstanding legal representation and unwavering support throughout my divorce and financial settlement case. Her expertise, diligence, and dedication were instrumental in achieving a favourable outcome.
Irfan
I cannot express enough gratitude for Jane Tenquist and her exceptional team at Myerson. During one of the most challenging periods of my life, they provided invaluable legal counsel and unwavering support. Ms Jane Tenquist is not only a brilliant legal mind but also an incredibly compassionate and understanding individual. She approached my divorce and financial settlement case with a keen eye for detail and a strategic approach, ensuring I received the best possible outcome. Her ability to navigate complex legal matters with ease and clarity was truly impressive.
Mr. C
Thank you so much – Jane and her team's support, professionalism and thoroughness throughout the last year has been superb.
Liam Kelly, Barrister, Deans Court Chambers
I have found Joe's management of this case…exceptional and well beyond his years. There have been some knotty issues in this matter…and his ability to cut through them and see the bigger picture is a credit to him.
Mr D
I would like to thank Nichola, and the family team, for all the guidance and support you provided to me during a very difficult time. This was much appreciated.
Meet Our Family Solicitors
Home-grown or recruited from national, regional or City firms. Our family lawyers are experts in their fields and respected by their peers.
Contact Us For Pension and Divorce Advice
If you need specialist advice on pensions and divorce, our Family Team is here to help. Contact us today to discuss your situation with a trusted legal expert.
01619414000
More Pensions and Divorce Advice
The Danger Of Overlooking Pensions And The Motherhood Penalty
When couples are separating, often their immediate concern will be about where they are going to live rather than thinking about their income in retirement. It is very easy to overlook pensions, as retirement can seem a long way off, and you may be more concerned about how your immediate housing and income needs will be met. After the family...
Read Blog
Bridging the Gender Pension Gap: Key Insights from Our Latest Podcast
The gender pension gap remains a significant issue in the UK, with women retiring on average with far smaller pension pots than men. Our latest episode of MyFamily Pod features Jane Tenquist , Head of Family Law at Myerson Solicitors, and financial planner Sally Beresford from Evelyn Partners discussing why this gap exists and how women can...
Listen to the Podcast
Pension vs. The Family Home – Is It Ever a Fair Deal?
When parties go through separation, the number one priority is often housing. The stress of ensuring immediate housing needs are met can often result in parties overlooking the importance of pension assets. When considering finances on separation, the overriding objective is fairness. This applies to pensions as well as all other capital assets...
Read Blog
What Happens to my Pension During Divorce?
Discover how divorce impacts your pension and explore strategies like pension offsetting, sharing, and attachment. Get expert advice from Myerson Solicitors to secure a fair financial settlement.
Read Blog