How much of my husband’s pension am I entitled to when we divorce?

​Under UK law, pensions are considered to be a joint marital asset. This means that when a couple is divorcing, pensions are liable to be viewed as collateral and divided accordingly. The way that they are divided differs between cases depending on a number of important factors. Current guidelines aim to divide combined assets evenly, however, the way this is achieved is not always straightforward, which is where specialist firms such as Major Family Law can help navigate the various pitfalls.

A 50/50 split: What does it actually mean?

​UK divorce legislation uses the equal division of matrimonial assets as a starting point from which to generate a financial resolution that is fair to both parties. The primary consideration for the Courts is the provision made for any dependent children. For example, if the main caregiver retains the marital property in order to provide a stable home for the children, the other partner may be allocated other financial assets instead, such as a lump sum payment or a larger stake in any pensions.

Which pensions can be split during divorce proceedings?

• Occupational pensions
• Private or personal pensions
• Additional State Pensions

Note that State pensions are not applicable and will not be taken into consideration.

​How are pensions split?

There are three ways in which pensions can be divided up during the divorce process. These are:

• Pension offsetting - where the value of the pension is offset against the value of other assets.
• Pension sharing - this requires a Court order and represents one party being allocated a percentage of the pension scheme of their estranged spouse.
• Pension attachment - these are where one spouse is allocated a share of their ex-partner’s pension but can’t benefit from it until they start to draw on the pension. It is rarely used any more. 

Pensions are commonly overlooked as financial

Research has suggested that around 70% of married couples fail to talk about their pensions before getting divorced. This means that many people either don’t even know that a spousal pension exists or that it counts as marital collateral. Factors which can influence the percentage of your husband’s pension that you may be entitled to include:

• Yours and your spouse's age
• Length of marriage
• Proximity to retirement
• Potential earning capacity

​What is taken into consideration during a decision?

Factors taken into account are highly dependent on individual circumstances. For example, if you haven’t been married for very long, you are significantly younger than your husband and have greater future earning capacity, or if the majority of their pension had been contributed prior to the marriage.

• Family responsibilities
  All divorces are different and there is definitely no ‘one size fits all’ solution. This is mainly due to circumstantial factors that the Courts place considerable weight on, such as the financial requirements of meeting the needs of any children and the ongoing financial needs of either yourself or your husband.
• Earnings
  Both the current and future potential earnings of the parties involved are given credence as well as both the financial and non-financial contributions to the marriage, for example, if one spouse has spent more time raising the children then this is considered as viable a contribution as bringing in a salary.
• Health and wellbeing
  Health considerations, including any long-term illness or disability will be recognised and accounted for along with the standard of living with which you have been accustomed to during the marriage.
  
  ​There are many issues to consider when it comes to pension entitlement. If you are getting a divorce, then speak to a legal professional about your individual circumstances to become more informed about what steps to take next.