Many ask whether an ex-wife can claim a former partner’s pension years after divorce. Though women in the UK can potentially seek a share of their ex-partner’s pension, there is often a significant gap in pension wealth between spouses. While the gender pay gap gets more attention, there is also a gender pensions gap: men’s pension assets on average are 56% higher than women’s.

Key statistics

• Research suggests that in around half of divorcing couples, one party holds 90% of the pension wealth—frequently the husband in different-sex marriages.
• Fewer than 15% of couples have roughly equal pensions.
• Data indicates that 60% of women don’t discuss pensions during divorce, resulting in an average loss of about £77,000 for women by retirement if pensions are excluded.

Those who choose a DIY divorce may be especially at risk of overlooking pensions, often in favour of the family home—potentially sacrificing long-term financial security for short-term stability. In addition, women typically have longer life expectancies, meaning they need larger pension funds to sustain themselves throughout retirement.

Pension sharing allows one spouse (or civil partner) to receive a portion of the other’s pension. Once legally formalised by a court order (Pension Sharing Order), the percentage awarded is transferred into a pension fund under the receiving spouse’s name. That spouse can then access the fund according to scheme rules and relevant tax regulations.

A Pension Sharing Order remains valid even if the paying spouse dies. However, note that charges or fees may apply, and recent updates by the Pensions and Lifetime Savings Association (PLSA) may affect these costs.

Rules vary between schemes:

• Some public sector schemes (e.g., NHS) may require you to remain in the existing fund.
• Others may not permit this and instead require a transfer out.
• Some give you a choice, enabling you to stay within the same fund or transfer your share elsewhere.

In some cases, remaining within the original fund may offer better benefits. If you transfer out, you’ll likely need to set up or join a new pension arrangement in your own name.

Pension offsetting involves one spouse keeping their pension while the other receives a larger share of other assets (e.g. the family home) to compensate. This approach is possible only if there are sufficient non-pension assets to provide a fair offset.

Because a pension typically provides future income, comparing its value with, for instance, the immediate worth of a property can be complicated. Figures provided by pension funds can be misleading if taken at face value, so it’s vital to seek legal and financial advice before agreeing to offset pensions. Any offsetting arrangement should be set out in a court order to make it legally binding.

Sometimes known as ‘earmarking’, a Pension Attachment Order (PAO) diverts part (or all) of the paying spouse’s pension payments to their ex-spouse once the pension is in payment (retirement). Unlike pension sharing:

• The pension scheme remains in the original spouse’s name.
• Payments only begin when the paying spouse draws their pension.
• If the paying spouse dies, payments end.
• There is no option for a ‘clean break’, as the receiving spouse may rely on ongoing contact or updates about pension drawdowns.

Due to these limitations, pension attachment orders are seldom used.

Yes. Only a court can grant a Pension Sharing Order or Pension Attachment Order after divorce. Pension offsetting technically doesn’t require a court order, but having a legal agreement approved by the court helps ensure clarity and enforceability later.

Pensions already in payment can still be split. However, once pension benefits are in payment, flexibility is often reduced. For example, you usually cannot withdraw a lump sum from a pension that’s already in payment or one that’s been converted into an annuity.

Need Further Advice? Contact HM & Co. Solicitors

Understanding the complexities of pensions in divorce is crucial to securing a fair financial outcome. HM & Co. Solicitors specialises in guiding clients through every aspect of divorce, including pension settlements.

HM & Co. Solicitors
186 Lower Road, Surrey Quays, London SE16 2UN
Telephone: 02071128180
Email: info@hmsolicitorsltd.com

We offer tailored advice for your unique situation, ensuring you feel informed and supported at each step.