Mind the Pension Gap

Pensions can be one of the most valuable assets of a family, often far outweighing the value of the family home or other savings. In many cases that we see, one spouse will have limited pensions themselves, perhaps due to them staying at home to raise a family or working part time and making insufficient pension contributions. Conversely, the spouse who has gone out to work throughout the marriage may have accrued a sizeable pension.

On divorce, the disparity in pension assets between the parties may be substantial. Quite often, there is a misunderstanding or misplaced notion that the pension assets should remain with the spouse who contributed to them, or that it would be too difficult for the other spouse to make a claim against them, but that is not the case. The Courts have had the power for over 20 years to make pension sharing orders on divorce to address any disparity and unfairness in pension provision between a couple when they divorce.

Failure to make a claim against your spouse’s pension on divorce can have long term financial implications for you. It is therefore essential that you seek expert advice on separation or divorce at an early stage, so that you can achieve a settlement that is fair, and in appropriate cases, provides adequate pension provision for your retirement.