Divorce

In a divorce, pensions are generally treated as matrimonial assets, subject to other arguments of non-matrimonial as accrued prior to the relationship,  so they need to be included when sorting out your finances. To understand their value, you can ask each pension provider for a cash equivalent transfer value, which shows what the pension is worth at that time. This value is then considered alongside other assets, like property or savings.

Like all matrimonial assets the sharing principle will apply but how that reflects in respect of pension entitlements may not be straight forward and will require your solicitors assistance and possibly that of an actuary.

There are three main ways a pension can be dealt with in a divorce, depending on what is fair for both people:

1. Pension sharing order

This is the most common option. A portion of one person’s pension is transferred into the other person’s name. This gives each of you your own separate pension, helping achieve a clean financial break so you are no longer tied to each other.

2. Pension attachment order

This is less common. The pension stays in one person’s name, but they must pay part of their pension income or lump sum to their ex-partner when it is paid out. This keeps you financially linked, and payments will stop if the pension holder dies.

3. Pension offsetting

Instead of splitting the pension, one person keeps their pension or a higher percentage of their pension while the other receives a larger share of other assets, like property or savings. This also allows for a clean break, but the value of a pension is not always equal to cash or property, so adjustments are usually made.

The option used will depend on your individual circumstances and what leads to a fair overall settlement.

Your partner will not automatically receive half of your pension if you divorce.

Although pensions are usually included as part of the assets to be considered, they are not always split equally. The court will look at your individual circumstances to decide what is fair. For your solicitor to advise you as to the fair outcome in respect of pension entitlements there will need to be an actuary report.

This can include factors such as the length of your marriage, your ages and health, your incomes and future earning potential, your respective pension savings, and any contributions to the family, including childcare or time spent out of work.

In some cases, a pension may be shared to balance a significant difference between what each person has. In others, one person may keep their pension while the other receives a larger share of other assets, such as property or savings.

Ultimately, the aim is to reach a fair outcome, not necessarily a 50:50 split.

Your former spouse may be entitled to a share of your private pension. However, they will not be entitled to your basic UK State Pension however the Court may decide the Pension Sharing Order should be calculated to provide for equality of pension income upon pensionable age, the state pension income will therefore be relevant for the overall % of your private pension benefits.

However, this doesn’t mean all pensions are automatically shared. The court will look at what is fair based on your individual circumstances

Yes – if you or your spouse have a private pension, it must be disclosed as part of the financial disclosure during divorce. This includes all pensions, whether in the UK or abroad. Full disclosure helps ensure a fair settlement and allows the court or your solicitors to consider your pensions when dividing assets.

You may be able to keep all or part of your pension, but it is usually considered in a divorce settlement. Ways to help protect it include prenuptial or postnuptial agreements, negotiating to offset your pension against other assets, or using mediation to agree terms with your spouse. Early advice from a family law specialist can help you understand your options and protect your retirement income.

Divorce usually doesn’t affect your basic State Pension or the new State Pension.

If you have the old State Pension (reached pension age before 6 April 2016), the extra part of it based on your earnings might be shared with your ex if the court decides.

There are special rules for some pensions, so it’s a good idea to get advice about your own situation.

Most pensions are usually considered part of the assets to be divided in a divorce. However, if the marriage was short, the court may decide it’s not fair to split the pension.

Pensions built up before the marriage can be ringfenced and therefore not shared within short marriages, unless there is a clear financial need and no other resources.

You usually don’t lose your pension if you remarry.

If your pension was shared with your ex through a pension sharing order (part of your pension legally transferred to them) or offsetting (your ex got more of other assets instead), that arrangement stays the same.

If your pension was under a pension attachment or earmarking order (your ex receives part of your pension income when you retire), this usually stops when you or your ex remarries.

A clean break financial order is a legal agreement that finalises who gets what. It prevents either of you from making future claims on each other’s money or pension.

Nominations are who you’ve chosen to get your pension if you die. Remarriage can affect this, so it’s important to check and update them.

In the UK, pets are treated as property, not family members, during a divorce. This means the court decides who keeps the pet in the same way it would divide other assets.

In reality, the decision often comes down to who bought the pet, who primarily cares for it, and who is best placed to look after it going forward. Because the law doesn’t prioritise the pet’s welfare in the same way as a child’s, many couples choose to agree arrangements themselves rather than leave it to the court.

Yes. In the UK, pets are legally treated as property in divorce settlements.

This means the court will decide ownership in the same way as other assets, usually considering who purchased the pet and who has been its primary carer.

To prove ownership of a pet in a divorce, it helps to have clear, practical evidence.

Useful documents can include:

• Purchase or adoption records showing who acquired the pet.
• Microchip registration details (often a key indicator of ownership).
• Veterinary records in one person’s name.
• Pet insurance documents.
• Receipts for food, vet bills, or other expenses.
• Evidence who cares for the pet day to day, if a dog for example taking on walks, accompanying vets etc.

No single document is decisive, but together they help show who has been responsible for the pet and treated as its owner.

Matrimonial property usually includes assets built up during the marriage. This can include things like the family home, savings, pensions, and income earned while you were together. These assets are typically considered to belong to both parties, regardless of whose name they are in.

Non-matrimonial property refers to assets that were either not acquired during the marriage or received by one party to the marriage solely and never intermingled with matrimonial assets nor used as income to discharge matrimonial/ family costs. This can include property owned before the relationship, inheritances, or gifts received from third parties. These assets may be treated differently, although they are not automatically excluded from consideration.

This case looked at how non-matrimonial assets should be treated in a divorce.

The husband had built up significant wealth before the marriage but later put some of it into the wife’s sole name s for tax purpose solely with the intent that the money would then be transferred on for the benefit of the children of the family solely. The parties marriage ended when the investment remained in the wife’s sole name. . The wife argued this meant the assets should be treated as matrimonial and shared equally.

The court said that putting assets into joint names or transferring into the other’s spouse sole name does not automatically change their nature. It is still important to consider where the asset originally came from, as well as how it was used during the marriage and the intent behind the asset

In the end, the court decided that most of the husband’s wealth remained non-matrimonial (the wealth accrued prior to the marriage). Rather than dividing everything equally, the wife received a settlement based on fairness and her financial needs.

This case shows that pre-marriage assets can remain separate, but it will always depend on the circumstances.

There is no fixed formula for dividing property in a divorce. The court’s primary aim is to achieve a fair outcome.

The starting point is often an equal division of matrimonial assets, but this can be adjusted depending on the circumstances.

The court will consider a range of factors, including:

• The financial needs of both parties
• The welfare of any children
• The length of the marriage
• Each person’s income and earning capacity
• Contributions made during the relationship (both financial and non-financial)

The outcome will depend on what the court considers fair in the specific circumstances.

Yes, non-matrimonial property can be taken into account in a divorce settlement.

Although it may be treated differently from matrimonial property, it is not automatically excluded. If the available matrimonial assets are not sufficient to meet the needs of both parties, the court may consider non-matrimonial property as part of the overall division.

The key consideration is fairness, particularly where housing or financial needs cannot otherwise be met.

The court will look at several factors when deciding how to classify property.

These can include:

• When the asset was acquired (before, during, or after the marriage)
• How the asset was used during the relationship
• The nature of the asset ie an inheritance, gift etc
• Whether the asset was kept separate or shared
• The intentions of the parties

The court will look at the overall context rather than relying on the legal ownership alone.

Yes, non-matrimonial property can become matrimonial over time. This is sometimes referred to as “matrimonialisation”.

This can happen where:

• The asset is placed into joint names  with the intent that it is to become jointly owned beneficially as well as legally.
• It is used for family purposes (for example, as the family home)
• It becomes mixed with matrimonial assets
• Both parties treat it as shared during the marriage

Whether this happens will depend on the specific facts of the case and how the asset was handled during the relationship.

Yes, you are required to disclose all assets, including non-matrimonial property.

This forms part of your duty to provide full and frank financial disclosure during divorce proceedings. This includes assets held in your sole name, jointly held assets, inheritances, and any interests you may have in property or investments.

Failing to disclose assets can have serious consequences. The court may impose penalties, and any agreement reached could later be challenged or set aside.