Don’t Forget the Pension

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].