Pensions on Divorce: 25 Years of Legal Change

Pension sharing, as we know it now, came into force on 1st Dec 2000, two months after I qualified as a Solicitor.  Before December 2000, the only option really available was to offset the pension against other assets, usually the home.  This outcome left one party with the capital asset of the home and the other party with future security in the form of a pension income. With no mechanism for sharing pensions, they were often rarely considered in divorce settlements, which was a large part of the campaign for reform.  Pensions can be valuable assets, and proper consideration needs to be given to them on divorce.  I recall, while in practice in 2000, we were advising clients to delay issuing their divorce application until after December 2000 so they had the benefit of the new pension sharing laws.

Over the last 25 years, the importance of giving clients full and detailed advice on pension sharing has become vital in divorce, with Solicitors’ firms being found negligent if this important asset is not considered properly.  Pensions are complicated, and consideration must be given to obtaining specialist reports from pension experts during divorce proceedings regarding both pension sharing and offsetting one person’s pension against other assets, i.e. the equity in the family home.  It is important to note that you cannot treat pensions pound for pound in the same way that you would cash assets.

Due to working in Dorset throughout my career, I have vast experience in pensions in divorce, particularly as we have a large civil service workforce, army and navy workers, local council, prison, land registry, NHS and education employees. I am able to advise clients on pension sharing during divorce to achieve the best possible outcome for both parties.