Family Law · Financial Settlements · Pensions
Pension Sharing on Divorce
Pension Sharing Orders, Offsetting & Earmarking — Clear Advice on Dividing Pensions
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Why pensions matter so much
Pensions are often the most valuable asset in a marriage — sometimes worth more than the family home. Yet they are frequently overlooked or undervalued in divorce settlements. Failing to address pensions properly can leave one party significantly worse off in retirement.
Pensions can be shared, offset against other assets, or earmarked. Each approach has different implications for both parties — and the right solution depends on your specific circumstances, the type of pension involved, and the overall settlement.
Martin Dias has extensive experience advising on pension division in divorce, including complex cases involving defined benefit schemes, public sector pensions and multiple pension arrangements.
Your Options
Three Ways to Deal with Pensions on Divorce
Pension Sharing Order
Most CommonA pension sharing order splits the pension at source. The receiving spouse gets a percentage of the pension fund transferred into their own pension arrangement. This is the most common approach and achieves a clean break.
Pension Offsetting
Clean BreakRather than splitting the pension, one party keeps the pension in full while the other receives a larger share of other assets (such as the family home) to compensate. This avoids the need for a pension sharing order but requires careful valuation.
Pension Earmarking (Attachment Order)
Less CommonA proportion of the pension income or lump sum is earmarked for the other spouse when it comes into payment. This is less common as it does not achieve a clean break — the receiving spouse remains financially linked to the other party.
Different Types of Pension — What You Need to Know
The fund value is relatively straightforward to value. A CETV (Cash Equivalent Transfer Value) is obtained from the pension provider and used in negotiations.
More complex to value. A CETV is obtained but may not reflect the true value of the pension income. An independent pension actuary may be needed to provide an accurate assessment.
The State Pension cannot be shared but is taken into account when assessing each party's overall financial position and future income needs.
NHS, teachers, police and other public sector pensions are defined benefit schemes. They can be shared but require careful handling — the CETV may significantly understate the true value.
SIPPs can hold a wide range of assets. Valuation may require specialist input depending on the underlying investments.
Many people have multiple pension arrangements accumulated over a career. All pensions must be disclosed and considered in the financial settlement.
This guide is for general information only. Pension division is complex — always seek specialist legal advice tailored to your circumstances.
Your Pension Sharing Specialist
Your Family Law Specialist
Martin Dias
Family Law Executive
Martin brings almost 30 years of specialist family law experience to every case — divorce, separation, financial settlements and children matters. Clients value his straight-talking honesty, patience, and genuine emotional support throughout what is often a very difficult time.
Client Testimonials
What Our Clients Say
“Dividing our assets after 20 years of marriage was complex. Martin understood the full picture — the property, the pensions, the business interests — and achieved a financial settlement that was genuinely fair.”
Patricia N.
Financial settlement — complex assets, Chester
* Names changed to protect client confidentiality. Testimonials reflect genuine client experiences.
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Concerned About Your Pension in Divorce?
Pensions are too important to overlook. Martin Dias will ensure your pension position is properly assessed and protected.
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