Why it’s important to consider pension sharing when divorcing

Recent research by the University of Manchester, suggests that if the value of pensions is not considered when divorcing, it can leave some women facing financial hardship during retirement.

The research highlighted the fact that pension wealth is often held by one half of a couple, usually the male. This is because, without a career break for having and raising children, men enjoy greater career progression, earning power and more time and resources to accumulate a private pension. In contrast, many women, especially those working part-time may not earn enough to consider a private pension of their own.

When divorcing many women forgo any pension sharing rights during a financial settlement, as they prefer to trade these for the family home. However, many do not understand the true value of what they are giving up if the value of a pension pot is excluded from the negotiations. This can lead to financial hardship for some women during retirement.

The research report can be read here: https://pure.manchester.ac.uk/ws/portalfiles/portal/198615915/Pensions_and_Divorce_Exploratory_Analysis.pdf

We would advise anyone thinking about divorce to seek professional legal advice to help protect against financial hardship in later life. At Tisshaws we offer we offer a no obligation initial consultation for up to 60-minutes for a fixed fee of £100 (incl. VAT). At this meeting, we can advise you on all the issues relating to your personal circumstances, including pension sharing and signpost possible ways forward.

To book an appointment please call 01444 472700, email us at [email protected] or complete the form below.