# Pensions Last updated: 2026-11-12 GUIDE • DIVORCE FINANCE SOLICITORS # Pensions Pensions are often among the most valuable assets in a marriage, yet they are frequently overlooked or undervalued on divorce. Because a pension provides income in retirement rather than money that can be spent today, dividing it fairly requires careful thought about both its value and its purpose. This guide explains how pensions are treated in divorce, how they are valued, and the options for dividing them. Written by Nicola Jones - Partner, Divorce and Family - Last reviewed 13th October 2026 KEY POINTS - Pensions built up by either spouse are usually taken into account in the financial settlement. - The cash equivalent transfer value (CETV) is the starting point, but it may not reflect a pension's true worth. - Pensions can be shared, offset against other assets, or subject to an attachment order. - The new State Pension cannot be shared, although some older state pension entitlements can. - Finalising the divorce before the finances are resolved can put pension rights at risk. --- ### Are pensions included in a divorce settlement? Yes. The court is required to consider all pension arrangements held by either spouse, including workplace, personal and public sector pensions, as well as pensions already in payment. Where one spouse has built up significantly more pension provision than the other, often because the other took time away from work to raise children, the court will consider how to address that imbalance so both parties have adequate income in retirement. ### How are pensions valued? The starting point is the cash equivalent transfer value (CETV), which can be requested from each pension provider. For defined contribution pensions, the CETV is usually close to the fund value and is generally reliable. For defined benefit (final salary) schemes, particularly public sector pensions, the CETV can significantly understate what the benefits are worth. For this reason, guidance from the Pension Advisory Group recommends that a pensions on divorce expert (PODE), usually an actuary, is instructed in many cases, particularly where defined benefit schemes or offsetting are involved. ### What are the options for dividing pensions? There are three main options: - **Pension sharing.** A percentage of one spouse's pension is transferred into a pension in the other's name. This creates a clean break and is the most common approach. - **Offsetting.** The pension holder keeps their pension, and the other spouse receives a larger share of other assets, such as the family home. Because a pound in a pension is not equivalent to a pound in cash, offsetting needs careful calculation. - **Attachment.** Part of the pension income or lump sum is paid to the other spouse when the pension comes into payment. This is less common, as it does not create a clean break. If pensions form a significant part of your assets, click below to speak to one of our family solicitors in confidence. ### What about pensions built up before the marriage or after separation? In cases where there is more than enough to meet both parties' needs, the court may exclude pension rights built up before the marriage or after separation, focusing only on the portion accrued during the relationship. Periods of cohabitation immediately before the marriage are often treated as part of the relationship. In most cases, however, needs are the deciding factor, and the court may draw on the whole pension if that is necessary to achieve a fair outcome. ### What happens to the State Pension? The new State Pension, which applies to those reaching State Pension age from 6 April 2016, cannot be shared on divorce, although it remains relevant when assessing each party's future income. Some older entitlements can be shared, including the additional State Pension for those who reached State Pension age before April 2016, and in some cases a "protected payment". A State Pension valuation can be requested from the Department for Work and Pensions. ### Why does the timing of the final order matter? A pension sharing order cannot take effect until the divorce is finalised. If the final order is made before the finances are resolved, and the pension holder dies in the meantime, the other spouse may lose valuable widow's or widower's benefits that they would have received as a surviving spouse. For this reason, it is generally advisable to wait until a financial order is in place before applying for the final order. ### Common questions #### What does the court consider when deciding a financial settlement? Each person’s income, earning capacity, assets and needs, the standard of living during the marriage, the length of the marriage, each person’s age and health, and the contributions each of you has made. The children’s welfare comes first. #### Do I need a consent order if we have agreed everything? Yes. Without a court order, your agreement isn’t legally binding, and financial claims between you remain open, even after the divorce is finalised. #### What can I do if my spouse is hiding assets? Both of you have a legal duty to give full financial disclosure, and the court can order further disclosure and draw conclusions against a spouse who doesn’t comply. If assets are being moved to defeat your claim, an urgent freezing injunction may be possible. #### Will we need expert valuations in our financial settlement? It depends on your assets. A home can often be valued by agreement, but businesses, complex pensions and some investments usually need an expert, normally one instructed jointly by both of you. #### Does adultery or bad behaviour affect the financial settlement? Rarely. The court only takes conduct into account in exceptional cases, such as where one spouse has deliberately wasted or hidden assets. #### Who pays the legal costs in financial proceedings? Usually, each of you pays your own. The court can order one party to pay the other’s costs where they have behaved unreasonably, for example by refusing to negotiate or failing to disclose their finances. IN THIS GUIDE [Are pensions included in a divorce settlement?](#whose-name-is-on-the-deeds) [How are pensions valued?](#staying-in-the-home) [What are the options for dividing pensions?](#what-can-happen-to-the-home) [What about pensions built up before the marriage or after separation?](#how-the-decision-is-made) [What happens to the State Pension?](#the-mortgage) [Why does the timing of the final order matter?](#if-you-are-not-married) [Common questions](#common-questions) PART OF OUR SERVICE #### Divorce Finance Solicitors Expert advice on dividing your finances fairly when your marriage ends. [Read about the service](https://cms.rushtonfamilylaw.com/services/finances)![](https://rushtonfamilylaw.com/asset/3085/66-39-def/arrow-green.png) RELATED SERVICES [Financial settlements](https://cms.rushtonfamilylaw.com/services/finances/financial-settlements) [Spousal maintenance](https://cms.rushtonfamilylaw.com/services/finances/spousal-maintenance) [Child maintenance](https://cms.rushtonfamilylaw.com/services/child-maintenance) [Enforcing, changing and challenging child arrangement orders](https://cms.rushtonfamilylaw.com/services/enforcing-changing-and-challenging-orders) [Financial support during a divorce](https://cms.rushtonfamilylaw.com/services/financial-support-during-your-divorce) RELATED GUIDES [The family home](https://cms.rushtonfamilylaw.com/guide/the-family-home) [Businesses](https://cms.rushtonfamilylaw.com/guide/businesses) [Salary, bonuses, and shares](https://cms.rushtonfamilylaw.com/guide/salary-bonuses-and-shares) [Inheritance and gifts](https://cms.rushtonfamilylaw.com/guide/inheritance-and-gifts) [Financial disclosure](https://cms.rushtonfamilylaw.com/guide/financial-disclosure) [Consent orders and clean breaks](https://cms.rushtonfamilylaw.com/guide/consent-orders-and-clean-breaks) [Money from parents and family](https://cms.rushtonfamilylaw.com/guide/money-from-parents-and-family) [The financial court process](https://cms.rushtonfamilylaw.com/guide/the-financial-court-process) [Debts in divorce](https://cms.rushtonfamilylaw.com/guide/debts-in-divorce) [Tax in divorce](https://cms.rushtonfamilylaw.com/guide/tax-in-divorce) [How the court decides a financial settlement](https://cms.rushtonfamilylaw.com/guide/how-the-court-decides-a-financial-settlement) [Mesher orders](https://cms.rushtonfamilylaw.com/guide/mesher-order) [Hidden assets](https://cms.rushtonfamilylaw.com/guide/hidden-assets) ### How we work An experienced family solicitor will run your matter from the first meeting onwards, and you will deal with them directly rather than being passed between members of a team. Part of their job is to help you decide where your time and money are best spent. In most divorces there are points worth pressing and points that make little difference to the end result, and we will be straightforward with you about which is which. A lot of matters are resolved through negotiation or mediation, and where that is realistic we will recommend it. Where it is not, because the other side will not engage, or disclosure is incomplete, or the issues are genuinely contested, we will advise you on taking the matter to court and act for you there. **Rushton Family Law is the sister brand of Vardags. If your case involves complex finances or international issues, we will introduce you to the Vardags team.** [Book a consultation](#callback)