The importance of pension sharing in a divorce settlement

During the divorce process, many women have traditionally opted to trade the family home for any claim on an ex’s pension pot. However, it is becoming increasingly important that the value of any pensions is included in a divorce settlement to prevent one half of the couple facing financial hardship in their retirement years.

It is estimated that the average pension pot of women in the UK aged over 50 is £39,654 compared to men who have an average pension pot of £89,205, according to a research study by Legal & General https://www.legalandgeneral.com/retirement/pensions/guides/gender-pension-gap/.

This imbalance is owing to several factors including the gender pay gap, women taking career breaks to raise children and women often only working part-time to fit around childcare. Women also have a longer life expectancy than men with women living to an average of 82.6 years to men’s 78.6 years, according to the latest figures from the Office of National Statistics https://www.ons.gov.uk, so whatever they have managed to accrue in their pension pot will need to be stretched over an increased number of years.

Pensions are complex and require a specialist pensions expert to work out their value over time.  This is money well spent, ensuring that any financial settlement is just and fair, and that both parties enjoy equality of income during retirement. For this reason, we advise seeking early legal advice from a family lawyer to properly protect your interests when divorcing in both the short and the long term.

At Tisshaws, we have extensive experience of working alongside both specialist pensions experts and financial advisors to ensure our clients receive a fair settlement to take them through their retirement years,

If you are struggling with issues arising from separation and divorce, we offer a no obligation initial consultation for a fixed fee of £100 (incl. VAT), for up to one hour. At this meeting, we can advise you on all the issues relating to your personal circumstances, allowing you to make informed decisions moving forward.

To book an appointment please call 01444 472700, email us at info@tisshawssolicitors.co.uk or complete the form below.