I read a statistic last week. Apparently, about 10 million individuals in the UK save towards their
retirement each month. That’s a lot by anyone’s standards! However, only 12% of divorces include
some sort of order relating to pensions. To me, a family solicitor specialising in finance, this is
shocking.
A pension, in my experience, can often be more valuable than the family home. The Court has the
power to share it between spouses when they divorce. This forms a key part of an overall fair
financial settlement.
So why are pensions overlooked?
Possibly it’s emotional attachment. Often, pensions are built up by individuals contributing from
their monthly income over their career. This, perhaps understandably, might make them feel more
attached to the pension pot. The other party, who may have worked part time and spent more time
at home, often raising children, feels more passionate about the bricks and mortar surrounding
them in that moment. Keeping the house can feel like the bigger prize and, in many cases, the only
practical solution when money is tight and keeping a roof over the family’s head feels safer amidst
the chaos. This can mean a pension, which won’t be realised for years, will often be ignored if a
person wants to stay in the house.
Another big reason is how complicated it all feels. Separations are distressing and humans need
upset to pass quickly. Valuing a distant pension pot can feel like another hurdle in an already
worryingly complex and emotional situation.
What should you do?
Take a deep breath. All you need to do is get the relevant information for now. That’s it! One step.
Ring the pension company and ask for a CETV and ask the other party to do the same. You are
entitled to this information free of charge once per year. Your solicitor will then advise you if it’s
worth pursuing. If not, you move on, but it is simple enough to check.
If it is worth something?
A Pension Expert on Divorce (PODE) can help you understand how the pensions are best shared.
The cost of this can be shared and its money well spent on your future. As difficult as it can feel
now, the separation will be over in a few short months and a more secure future awaits.
Get in touch
If you would like any advice on finances, or any other family law issues, please do contact me on
01226 103054 or email at [email protected].
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