Our divorce and pensions solicitors can help with:
- Pensions entitlements in divorce
- Negotiating the inclusion of pensions in divorce settlements
- Court proceedings to deal with pensions in divorce
We can also advise on all other aspects of divorce and separation including financial arrangements on divorce.
Why choose Brethertons for help with pensions on divorce?
- Our expertise is independently recognised with Band 1 ranking in Family/Matrimonial Law by Chambers & Partners and Tier 1 ranking for Family Law from the Legal 500
- We are accredited by the Law Society for Family Law and Family Law Advanced
- Our team have experience with all types of pensions, including those that are very substantial and where there are significant complicating factors to consider
- We can help clients across England and Wales over the phone, via email and videoconferencing, as well as face-to-face where appropriate
- Our advice is straightforward and jargon-free, ensuring that you will be clear about your rights, your options and what we can do to help
Our divorce and pension services
Pensions entitlements in divorce
The earlier you can seek expert advice about pension entitlements in your divorce, the higher your chances of being able to reach an amicable settlement quickly. Knowing where you stand can help to set your expectations, so you can go into negotiations with a realistic idea of what you should be able to achieve in a settlement.
Our pensions solicitors can review your situation and provide clear, practical advice on what you may be able to claim from your spouse’s pension or vice versa. We can also talk you through the different options for dealing with pensions in a divorce settlement (please see the FAQs below for more information on this).
Negotiating the inclusion of pensions in divorce settlements
In the vast majority of cases, it is possible for divorcing couples to decide how pensions should be dealt with amicably. This can often be achieved through straightforward negotiations between the parties and their lawyers, but sometimes alternative dispute resolution may be required. This involves methods such as mediation, which provides a framework for separating couples to articulate their positions, hear the other side and find a positive way forward.
Our specialist pensions dispute solicitors can support you in negotiating with your former spouse, as well as helping with alternative dispute methods. Should you choose an option such as mediation, we can advise you on your position before the process and provide an independent assessment of any agreement you reach, so you can be confident that it is fair to your interests.
Court proceedings to deal with pensions in divorce
Unfortunately, it is not always possible to amicably agree how pensions should be dealt with in divorce. In these situations, it may be necessary to ask a court to decide how pensions should be handled, either as part of a wider determination of how assets should be divided or as a separate matter.
We can provide an honest assessment of whether court proceedings are a sensible option in your situation and, if so, support you through every stage of the process. By meticulously preparing your case and providing first-class representation, we can significantly increase your chances of a positive outcome in court.
Pension and divorce FAQs
How are pensions split in a divorce?
There are three basic options for splitting pensions in divorce:
- Pension sharing – Where part of a pension pot is taken out and placed into a new, separate pension for the other spouse, giving each person their own individual pension.
- Pension offsetting – Where one spouse gives up their rights to a share of the other spouse’s pension in exchange for taking a larger share of other assets of an equivalent value.
- Pension earmarking – Where it is agreed that the spouse with the pension will pay the other spouse a share of the pension income when they start drawing it (if they have not already done so). This option is rarely used as it requires an ongoing financial tie between the divorced couple, which is normally not desirable.
Our team will be happy to advise on divorce and pension sharing, offsetting and earmarking to match your circumstances.
How do I protect my pension in a divorce?
If you wish to protect your pension in your divorce, the best option is generally to agree a settlement with your former spouse that allows you to keep your pension. You might need to give up a larger share of other assets, such as your family home, in exchange for keeping your pension.
Is my wife entitled to half my pension if we divorce?
Knowing who is entitled to what in a divorce is not always straightforward, which is why getting expert advice is so important. If your pension is considered a marital asset then its value will need to be considered as part of the division of assets during divorce, but this does not necessarily mean that your spouse is entitled to half of your pension.
While it is true that the starting point under the law in England and Wales is a 50:50 split of assets, there are various factors that will influence what each person is entitled to. This will include the length of the marriage, each person’s assets and income, each person’s reasonable needs, whether there are any children to provide for and more.
A key point to understand is that, in a negotiated settlement, what each spouse ends up with will come down to what you can agree. It might be that your spouse wants half of your pension, but they might also be happy to let you keep your pension and take other assets instead or they might be willing for each of you to keep your own assets and only split shared assets, such as the family home.
Ultimately, exactly what each of you ends up with will depend entirely on the situation, so it is never a good idea to start making blanket assumptions about what each of you is entitled to before you take legal advice.
Can my ex take my pension after divorce?
The short answer is, yes, there is a risk your spouse could apply for a share of your pension after your divorce. However, they will not be able to do so if you have taken the right steps to protect yourself.
When getting divorced, it is generally recommended to reach a financial settlement before your divorce is finalised (i.e. before you have received the Final Order legally ending your marriage). That said, having a settlement does not automatically stop your former spouse making a further claim against your assets in the future. You have to take additional measures to protect against this.
When you reach a settlement, you should apply for a Consent Order to make the agreement legally binding and Clean Break Order, which legally cuts the financial tie between you and your former spouse. This would then prevent them making a claim against any of your assets, including your pension.
How are pensions valued in a divorce?
Working out how much a pension is worth can be tricky, so expert support is absolutely essential. One approach is to request a ‘cash equivalent transfer value’ or ‘CETV’ from the pension provider. The CETV is the amount the provider would give the pension holder if they were to transfer the pension to another provider or release the capital from the pension.
CETV is not always an entirely reliable way of assessing a pension’s true value, however, especially where you are assessing different kinds of pensions, such as a final salary pension compared to a defined benefit scheme. It is therefore strongly recommended to seek expert pension advice from a specialist, so they can give a realistic valuation.
Consult our divorce and pensions solicitors in Banbury, Bicester and Rugby
To speak to our experts today, please don’t hesitate to get in touch.
We have offices in Banbury, Bicester and Rugby, working with clients across Coventry and Warwickshire, the West Midlands, Oxfordshire and nationwide.
