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💔 Pensions and Divorce: What You Need to Know

 

When a relationship ends, it’s not just the house and savings that need to be divided—pensions are also considered part of your shared assets. Whether you're going through a divorce or dissolving a civil partnership, here's what you need to know about how pensions are handled.

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🧾 Are Pensions Included in a Divorce Settlement?

 

Yes. In most cases, workplace and personal pensions are included in the financial settlement.
In England, Wales, and Northern Ireland, the entire value of the pension is considered.
In Scotland, only the pension built up during the marriage or civil partnership is included 

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🔄 How Can Pensions Be Divided?

 

There are three main ways pensions can be dealt with in a divorce:

1. Pension Sharing

  • A percentage of one partner’s pension is transferred to the other.

  • This creates a separate pension pot for the receiving partner.

  • It’s a clean break—each person controls their own pension going forward.

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2. Pension Offsetting

  • The value of the pension is offset against other assets (e.g. one partner keeps the pension, the other gets more of the house).

  • No pension is transferred, but the overall split is balanced.

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3. Pension Attachment (Earmarking)

  • A portion of the pension is paid to the ex-partner when it starts being paid out.

  • This doesn’t create a separate pot and ties both parties together financially.

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🏛️ What About the State Pension?

The new State Pension (post-April 2016) cannot be shared in a divorce.
However, if you reached State Pension age before 6 April 2016, your Additional State Pension (not the basic amount) could be shared 

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If you’re entitled to a protected payment (from the old system), this might be shared depending on the court’s decision.

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📋 What Should You Do?

  1. Get a pension valuation – You’ll need to know how much each pension is worth.

  2. Speak to a solicitor – They can help you understand your rights and options.

  3. Consider financial advice – Especially if you’re dealing with large or complex pensions.

  4. Check your own pension – If you gave up a share of your ex’s pension, make sure your own retirement plans are still on track.

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🧠 Final Thoughts

Pensions can be one of the biggest assets in a relationship, so it’s important not to overlook them during a divorce.
Getting the right advice and understanding your options can help you protect your future.

 

Disclaimer:
This guide is provided for general information and guidance purposes only. It is not intended to constitute financial, tax, or legal advice. Individuals should seek professional advice tailored to their personal circumstances before making any financial decisions.

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This material is owned and distributed by ClearPensions.com. No part of this publication may be reproduced, stored, or transmitted in any form without prior written permission.

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