Research by Now Pensions and the Pension Policy Institute (PPI) has found that divorced women typically have around £400,000 less in pension savings than divorced men, holding just 29% of men’s pension wealth. Although pensions are the second-largest asset in a marriage after property, only 11% of the more than 100,000 divorces in 2024 and 2025 involved pension attachment orders, which allow for the division of pension assets. Simon Blain, family partner at Forsters, sets out the joined-up strategy he says is required to address gender-based pension inequality.
The authors of the research are right to call for pension provision to be considered in all financial remedy proceedings following divorce. Whilst this would help address the inequality, it is only a part of an overall joined up strategy required to address gender-based pension inequality.
The fact that only 11% of divorces involved pension sharing does not mean that pensions were not considered in all the remaining cases where they form a significant portion of the family assets.
The most common way of addressing pension assets on divorce is by offsetting the value of the pension against other assets (usually, but not always, equity in the family home). Whilst there are numerous issues with offsetting (highlighted in the report of the Pensions Advisory Group), it can be appropriate in cases where pensions are a relatively small proportion of the overall assets, or where the court’s concern is to ensure both parties can re-house themselves and their children.
The family court is generally considering the division of assets accumulated during the marriage. The average length of a marriage ending in divorce in the UK is 12 to 13 years. It follows that the pension pot accumulated by the couple during the marriage may be modest, particularly if the couple are focussed on acquiring a property during the early years of their marriage.
Whilst the court does have the ability to transfer non-matrimonial assets (including pension accumulated prior to the marriage) if it is necessary to do so to meet one party’s needs, they are less likely to do so if that need will not arise for many years after the divorce.
Effective pension sharing or offsetting on divorce requires expert input from a Pensions on Divorce Expert (PODE). Such reports cost several thousand pounds and there is often a wait of several months for a report to be produced. PODEs are, unsurprisingly, reluctant to take instructions from unrepresented litigants, which can lead to further delay.
This means that parties who are keen to achieve a quick or cost-effective divorce settlement, or who are reluctant to engage professional advisers, will often either ignore pensions, or resort to over-simplified offsetting (assuming that £1 of pension is of equivalent value to £1 cash).
It is vital that the party with fewer pension assets (usually, but not always, the wife) obtains professional advice at an early stage from a specialist family lawyer, who will be able to advise on the best way of dealing with pension assets. The family lawyer, in turn, will be able to seek advice from pension specialists and, if necessary, a PODE.
The cost of seeking such professional advice is likely to be recouped many times over if an appropriate division or offset of pension resources is achieved.
About the author
Simon advises private individuals on all aspects of divorce, relationship breakdown and matrimonial protection, including nuptial agreements. Renowned for helping separating couples to resolve issues in a constructive manner, his approach is assertive but not aggressive. Simon is passionate about standing up for his clients, seeking the best possible outcome in a cost-efficient manner. He has particular expertise in financial cases involving complex asset structures and works closely with colleagues in other departments to advise trustees and business owners on the impact of divorce on a family business or trust structure. Simon also advises on child arrangements post-separation, both domestic and international and on surrogacy.
