Understanding Pensions on Divorce
Pensions are often one of the most valuable assets in a divorce settlement, but they can also be one of the most difficult to understand.
Different pension schemes work in different ways, and the information provided is not always straightforward. This can make it difficult to understand what pensions are worth, how they compare and what a fair outcome might look like.
Our job is to help you understand your pension options, so you can make informed decisions about your financial future with confidence.
Why pensions matter in divorce
In many cases, pensions represent a significant part of the overall financial settlement and can have an important impact on long-term financial security.
While some pensions are relatively straightforward, others can be much more complicated, particularly where there are public sector schemes, several different pensions or values that are difficult to compare clearly.
Understanding these differences is important when considering how assets should be divided fairly.
How pensions can be divided
There are several ways pensions may be dealt with during divorce proceedings. These can include:
- Pension sharing – a percentage of one person’s pension is transferred into a pension in the other person’s name.
- Offsetting against other assets – one party keeps more of another asset, such as the family home, in return for a smaller share of the pension.
- Pension attachment arrangements – now less common, this involves part of the pension income or lump sum being paid to the former spouse when benefits are taken.
The appropriate approach will depend on the circumstances of the case, the type of pensions involved and the wider financial settlement.
Is specialist advice needed in Pensions on Divorce?
Standard pension valuations, such as Cash Equivalent Transfer Values (CETVs), do not always provide a complete picture of the benefits involved. Specialist pensions advice may be particularly important where cases involve:
- public sector pension schemes
- defined benefit pensions
- significant pension assets
- multiple pension arrangements
- uncertainty around pension values or settlement options
A specialist pensions on divorce report can help explain the value of the pensions involved and the implications of different approaches to settlement.
What is a single joint expert?
In some cases, both parties may jointly instruct a Single Joint Expert to provide independent pensions advice within the divorce proceedings.
The role of the expert is not to act for one side over the other, but to provide clear, impartial analysis that helps everyone involved understand the pension arrangements and the options available.
What is a litigant in person?
A Litigant in Person (LiP) is someone who represents themselves during divorce or financial remedy proceedings without instructing a solicitor. While many people choose to seek legal advice, others manage some or all of the process themselves. Where pensions form part of the financial settlement, independent expert advice can help ensure they are properly understood and valued.
Excalibur Actuaries' Independent Pensions on Divorce Reports
Our reports provide an independent assessment of pension arrangements within the context of divorce proceedings.
They are designed to help:
- explain pension values clearly
- compare different pension arrangements
- support informed decision-making
- provide clarity around available options
All reports are prepared by a fully regulated team of specialist actuaries with experience across a wide range of pension schemes.
Helping you through the process
We understand that divorce proceedings can feel stressful and uncertain, particularly where pensions are involved.
Our approach focuses on providing clear communication and practical explanations that help individuals understand the position and feel more confident about the decisions being made.
Where solicitors are involved, we work closely with both solicitor and litigant in person to support steady progress and clear outcomes.
Frequently Asked Questions
We understand that navigating pensions during divorce can feel overwhelming. Below are answers to some of the questions we're most commonly asked, helping you better understand the process and what to expect.
Is there an easy way to find out who I have pensions with?
Yes, there are a few ways to track down pensions if you are unsure who they are with, particularly if you have changed jobs over the years.
A good starting point is to:
- check old paperwork or emails from previous employers or pension providers
- look through old payslips, which may show pension deductions or provider names
- review your State Pension record through the government website, which may help identify periods of employment
You can also use the government’s Pension Tracing Service, which helps people locate pension providers and contact details for workplace and personal pensions. The service will not tell you the value of your pension, but it can help you identify which pension schemes you may have benefits with.
Once you have identified the pension provider, you can contact them directly to request details and a Cash Equivalent value.
The Government is in the process of establishing a pensions dashboard which will mean that you should be able to see all of your pensions in one place. This is not yet live but hopefully will be launched soon.
How do I collect pensions information?
You will usually need to contact each pension provider or pension administrator directly to request information about your pensions.
If you are going through a divorce, you can explain that you require pension information for divorce proceedings and ask for a Cash Equivalent value (sometimes called a CETV or transfer value statement).
For Defined Contribution pensions, providers can often supply an up-to-date fund value, recent benefit statements and a contribution history, if needed. Much of this information may also be available through the provider’s online portal.
For Defined Benefit pensions, additional information is often needed alongside the Cash Equivalent value, including details of:
- the pension accrued to date
- the normal retirement age
- how benefits increase over time, both before and after retirement
- any spouse’s or dependant’s benefits
- confirmation of whether a plan allows pension sharing internally (where the ex-spouse is provided with a separate pension credit within the same scheme) or externally (where the ex-spouse takes a transfer to another scheme).
How can I find out the value of my spouse's pension?
As part of a divorce or separation, both parties are usually required to provide details of all their pensions and their values. This is typically done through the financial disclosure process, either formally through the courts under the Family Procedure Rules, or informally if matters are being resolved outside of court.
If you are unsure whether all pensions have been disclosed, it is important to raise this with your solicitor. There are rules around financial disclosure and potential consequences if assets, including pensions, are not disclosed properly.
In some cases, further information may also be needed to fully understand the benefits within a pension scheme, particularly for Defined Benefit pensions or public sector schemes.
What is the process to instruct you?
Most instructions come through solicitors, although we can also accept instructions directly from individuals.
Once we have details of the pensions involved and the questions to be addressed, we will confirm what information is needed and provide a fee quote and estimated timescale.
For more information on the process, take a look at our Instructions page
Our Resources page includes a specimen letter of instruction and notes on how to complete it.
Supporting you through the instruction process
We aim to make the instruction process as straightforward and efficient as possible.
Supporting resources include:
- Specimen letter of instruction
- Notes on instruction
- Example report
- Code of Conduct
- Guidance on relevant court requirements and procedures