Many people are surprised to learn that pensions can form part of a divorce financial settlement. In some cases, a pension may be one of the most valuable assets in the marriage, even more valuable than the family home. 

In England and Wales, pensions are usually considered during divorce proceedings and can be divided if the court believes it is fair to do so. 

At southgate solicitors, our financial settlement solicitors regularly advise clients on pension division and other financial matters during divorce. 

Are Pensions Included in Divorce Settlements? 

Yes. 

Pensions are often treated as matrimonial assets, especially in long marriages. This means the court can take pensions into account when deciding how assets should be divided. 

This can include: 

• Workplace pensions 

• Private pensions 

• Final salary pensions 

• Personal pension schemes 

The court aims to achieve fairness between both parties based on their future financial needs and retirement security. 

If you are also concerned about wider asset division, read our guide on Is Everything Really Split 50/50 in Divorce in the UK? 

Does This Mean My Pension Will Automatically Be Split? 

No. 

There is no automatic rule that pensions are divided equally. The court looks at several factors before making a decision, including: 

• Length of the marriage 

• Age of both parties 

• Future income and earning capacity 

• Other assets available 

• Retirement needs 

In some cases, pensions may be shared. In others, one person may keep more pension assets while the other receives a larger share of another asset, such as the family home. 

You may also want to read our article on What Happens to the Family Home After Divorce? 

What Is a Pension Sharing Order? 

A Pension Sharing Order allows part of one person’s pension to be transferred into the other person’s pension scheme after divorce. 

This creates a separate pension pot for each person moving forward. 

The court may make a Pension Sharing Order if it believes this is the fairest solution based on the financial circumstances of the case. 

Our divorce solicitors in London can help explain whether pension sharing may apply in your situation. 

Can Pensions Be Ignored During Divorce? 

Ignoring pensions can sometimes lead to unfair settlements, particularly in long marriages where one spouse has significantly larger retirement savings. 

It is important to obtain full financial disclosure during divorce proceedings so that all assets are properly considered. 

Our family law services team can guide you through the financial disclosure process and help protect your interests. 

What Happens if We Reach an Agreement Ourselves? 

Many couples agree financial matters without attending court. However, it is important to formalise any agreement through a legally binding Consent Order. 

Without a Consent Order, financial claims may remain open even after divorce. 

You can also read our guide on How to Reach a Financial Settlement During Divorce Without Going to Court 

Our Consent Order solicitors can help ensure your agreement is properly drafted and approved by the court. 

Do Short Marriages Affect Pension Division? 

Sometimes. 

In shorter marriages, the court may place more importance on what each person built up independently before the relationship. 

However, every case is different and depends on the overall financial circumstances. 

Why Legal Advice Is Important 

Pension division can be one of the most complicated parts of a divorce financial settlement. Seeking legal advice early can help you understand your rights and avoid mistakes that may affect your future financial security. 

At southgate solicitors, we advise clients across England and Wales on divorce, financial settlements, pension sharing, and wider family law matters.