Dividing Pension Assets During Divorce Proceedings in the UK

Since no-fault divorces are a hassle-free option for couples in the UK, they can divide their assets peacefully during the procedure. Typically, the reasons for divorce have no impact on the financial settlement. Even if your spouse was quite faithful and chose to divorce you or vice versa, the asset division will be dealt with separately from it.

Before getting into the nitty-gritty of dividing the assets, let’s understand what pension assets are. After that, we will tell you how to proceed with pension asset divisions.

Value of pension assets in family law

In the UK, pension asset division is considered a part of a financial settlement agreement because courts consider pensions as marital assets. Therefore, pensions are subject to division between a couple. The objective is merely to provide you with money after you have retired from your job.

Now, a few ways this can be done are via:

  • Pension sharing
  • Pension offsetting
  • Pension attachment

You can discuss with your family lawyer for legal advice or a pension expert for dividing your pension assets fairly.

Ways for dividing UK pensions in divorce

There are three common ways to divide the pension between partners. However, you should consult the solicitor to know what best suits you.

Pension sharing

In this method, you must share a percentage of your pension with your spouse. This will create a sense of transparent partition because each of you will have your share of the pension fund. To begin with, you must first acquire a CETV, i.e., cash equivalent transfer value of your pension. This will let you know the current worth of your retirement.

Sit with your legal representatives to negotiate a pension-sharing percentage. Here, you could split it into equal halves or a different percentage. Typically, the most common division is 50/50. Send a pension sharing order to the pension provider, and now the provider will send you the pension money no matter what.

Pension offsetting

In this case, the value of the pension is offset against other marital assets. For example, one spouse might get a more significant share of the assets. You can balance the value of the pension with property or savings.


First, you have to figure out the value of the pension owned by each spouse. After that, list the value of all the other marital assets. The list should have information about property, savings, investments, etc.


After that, in the presence of a legal solicitor, negotiate a settlement per the value of pensions and other assets you have. Reach an agreement, and in this case, remember that one party might end up retaining property or savings to offset the value of the other party’s pension.

Pension sharing orders

Present your agreement to the court and let it review the order to ensure it is done in all fairness. It is the court’s job to evaluate it closely before approving it. After this, the order will be implemented, and one party will get a larger share of other assets.

Pension attachment, AKA earmarking

Not many couples prefer this method because of the complexities it involves. It includes earmarking a portion of one’s pension to be paid to another spouse when it comes into payment. This method creates a sense of dependency, and whenever the pension holder does not receive the compensation, the payment to the former spouse is also delayed.

You and your spouse must disclose your financial assets and pensions at the beginning of the divorce. The court will inform you which pensions are subject to attachment per their value and issue an attachment order. The court will specify the percentage of the pension to be paid to the other spouse.

Once the time of payment arrives, the pension provider will pay directly to the former spouse. Regular monitoring is done to ensure the parties are complying with court orders. The payment continues unless either party dies or the receiving party remarries.

Parting thoughts!

The no-fault divorce provides you with a chance to have the financial settlements done without any difficulty. But to avoid any unfair settlement, Lawyersorted can immediately provide you with an online consultation session with a top solicitor in your area. They can help you with your doubts and guide you in choosing the proper method of pension division.

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