Kate Booth, solicitor and head of our Family & Matrimonial team, comments after new research revealed that divorced women typically have £53,160 less in pension savings than divorced men.

Women depart divorces with an average of £32,640 in pension savings, amounting to just 39% of the £85,800 retained by divorced men, according to the research from Mercer, now:pensions and the Pensions Policy Institute.

The findings also show a significant pension wealth gap among married couples, with men holding £111,540 and women’s average pension funds at just £43,656 – a difference of 61%.

Kate explains that the research, to be released in full in the 2026 Gender Pensions Gap report, should remind couples to make sure pension assets are properly considered in divorce settlements.

“When divorcing, most couples will have thought about what will happen with the family home, and how to divide joint accounts, but many do not consider their pensions following separation.

Pensions can make up a significant proportion of a family’s assets and can sometimes be more valuable than a property. However, because they won’t start to pay out until retirement, they are often overlooked.  

One spouse might find that they have received lower income over the course of the marriage, working part-time or taking on more of the childcare responsibilities.

Because of this, they might not have had as much opportunity as their partner to build up their own pension fund, leaving them in a significantly weaker position when they retire.   

It is important to be aware that all pensions – regardless of whose name they are in, or when they were built up – can be shared between separated spouses under a Pension Sharing Order made by the court on divorce.

It is important to make sure that both parties’ financial needs can be met in the future – this includes their need for income during retirement. 

A pension sharing order will transfer part of one spouse’s pension into a separate fund for the other, giving them their own source of income and enabling there to be a financial clean break.”

Contact us if you require assiatance with this matter.

Our experienced family lawyers can provide you with the divorce advice and representation you need to secure the right outcome for yourself and your family. We have a strong understanding of pension division in divorce, and we will discuss your circumstances in detail so that you have a clear picture of your options.

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For some this may not be a huge issue as any pensions you may have may be insignificant or may have been frozen years previous however, for others who have continued in their employment and particularly if they have public sector pensions such as with the NHS, Teachers Pension Scheme, the MOD (Military) or indeed the Police then those pensions can be extremely valuable. 

An important case dealing with this issue was decided in 2020 which has now paved the way as to how we approach this issue.  The case confirmed that setting aside the amount of a person’s Pension which accrued pre marriage or post marriage, is inconsistent with the way in which non matrimonial property is treated in divorce. Most divorce cases will be needs cases which means that the focus will be on the needs of both husband and wife rather than on arguments as to who contributed what. It is important therefore to appreciate that in needs  cases the timing and source of the pension savings is not necessarily relevant. What this means in simple terms is that in reality the whole of your pension could be taken into consideration and open to division between you and your ex-spouse regardless of when it was accumulated. Therefore, if you and your ex-spouse have been separated for 15 years but have not yet divorced then the amount of your pension which has built up over that 15 year period could also be open to division between you and your ex-spouse upon divorce.

In many cases that we deal with Pensions may be the largest asset or at least the second largest asset and for those who hold that Pension fund they can be extremely reluctant for any of that pension fund to be shared with their ex-spouse. It is therefore vital that individuals obtain legal advice as soon after the parties have separated as possible in order that they are aware of all of the implications.

For further advice on matrimonial assets, or any other family and matrimonial reated matters, please get in contact with our friendly, experience Family and Matrimonial team.

Article written by Natasha Aspinall.

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Obtaining a divorce can be relatively easy. Very often, the hardest thing for clients is resolving the matrimonial finances instead. It is always difficult advising clients on what they can expect from a divorce settlement. Everyone wants to know what they will receive and when, but no two cases are ever the same. There is no set formula for division of income and assets.

Under section 25 of the Matrimonial Causes Act 1973, we have to consider the following factors when negotiating a financial settlement:

• The income, earning capacity, property and other financial resources of the parties, including earning capacity;
• the financial needs, obligations and responsibilities of each party;
• the standard of living enjoyed by the family before the breakdown of the marriage;
• the age of each party to the marriage and the duration of the marriage;
• any physical or mental disability of either of the parties to the marriage;
• the contributions which each of the parties has made or likely to make;
• the conduct of each of the parties;
• the value to each of the parties to the marriage of any benefitwhich, by reason of the dissolution or annulment of the marriage, that party will lose the chance of acquiring.

It is always a good idea to collate all of the relevant financial documents in support of each of the factors above. This helps me to advise clients properly. You may find the list below helpful in understanding what should be collated:

1. A copy of your last mortgage statement, showing how much is owed on the former matrimonial home.
2. Statements for each bank or building society account in your name (solely or jointly) covering the last twelve months.
3. Any documentation you have to confirm any Shares, PEPs, ISAs, Tessas, National Savings Investments, Bonds, Stocks, Unit Trusts, Investment Trusts, Gilts, or any other quoted securities.
4. A copy of any life insurance policy or endowment policy in your joint name or sole name, together with any accompanying correspondence.
5. A list of any personal belongings that are individually worth more than £500 each.
6. A copy of any bank loan or HP agreement on which you owe money.
7. Credit card statements from the last three months for each credit card you have.
8. A copy of any pension policy that you have together with any accompanying correspondence.
9. Your last three months’ worth of pay slips.
10. Your last P60.
11. Documentary evidence of any other income you might receive.

I also like to determine exactly what the client’s monthly outgoings are and what the client can afford. Why? Simply put, it can be difficult housing two people from one pot – so I need to establish what is a fair split for this particular couple and their children. How much do they both reasonably need going forward, and how should the income and assets be fairly shared between them?

A client’s expectations can often be too high, and sometimes may even be too low. Once I understand a client’s situation and what they want, I can then begin to advise on what would be achievable.

The longer the marriage, the more likely that the starting point of negotiations will be an equal split of matrimonial assets. This relates to assets accrued during the marriage only. If the union was a short marriage of five years or less, the starting point will likely be that the parties leave the marriage with the same share they had when entering into it.

Children, though, change everything. Their needs come first. The primary carer will often need more money to care for the children and, depending on the other factors above, could therefore receive more than fifty per cent of the available assets. Furthermore, if the matrimonial assets are insufficient to meet the needs of the children, then other assets will be drawn upon.

Divorce is a difficult time, whether at Christmas or not. Engaging a specialist really can make it easier. If you have assets you need to divide, please do feel free to call me on 02476 531532.

Melanie Davis (née Timms)

Family Solicitor

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