Pensions on Divorce: Why They Matter and How They’re Shared

This post covers the law as it applies in England and Wales (correct at July 2026). |  Estimated reading time: 4 minutes

Pensions are not the most glamorous subject, and when couples divorce, they are often overlooked by the parties. Yet pensions on divorce can be one of the most significant, and most commonly under-addressed, assets in a financial settlement.

For over twenty years, courts have had the power to share the parties' pensions on divorce. Research shows the effect of this: in only around 12% of financial orders are pension sharing orders made, and on retirement, the financial position of parties can vary hugely.

The pension gap facing divorced women

Research from Mercer's now:pensions and the Pension Policy Institute highlights a 61% pension gap for divorced women in the UK, with divorced women typically holding £53,160 less in pension savings than divorced men. This reflects the reality that many women sacrifice careers, and the pension contributions that would have gone with them, to raise children. Those years cannot be recovered, and the consequences, often invisible at the time of divorce, can be significant decades later.

Why pensions get overlooked

Generalising is fraught with difficulties, but experience shows that on divorce, men are often more concerned with the preservation of their pensions, while women are often more focused on providing a home for themselves and, often, the children. To avoid a "messy divorce" and preserve goodwill, the first casualty can be a pension sharing order.

Equally, an apparent fair agreement can be based on a false premise: comparing the face value of a pension with, say, the value of a house, can lead to a significant problem. Many pensions require careful consideration to determine the true value of the benefits: the reality is simply not apparent from the headline figure. This can lead to an apples and pears settlement, which is fundamentally flawed and so unfair.

The role of a PODE in valuing pensions properly

Rushing into a settlement without the right information or analysis will lead to problems later. A clean break order may prevent this issue being revisited, and in fact you may not realise the full extent of the problem until later in life.

In some cases, it may be necessary to instruct a Pension on Divorce Expert (PODE) to value each of your pensions properly. A PODE can look beyond the headline figure to establish the true value of more complex pensions, such as final salary or defined benefit schemes, and advise on how pension sharing might work in practice, which is often essential to reaching a genuinely fair settlement.

You may be placed under pressure to agree a settlement and wish to wrap things up quickly and move on. Cliched, but "act in haste, repent at leisure" is apposite when considering pension sharing orders.

How are pensions split on divorce?

So, what is to be done? First, a balanced view must be taken, considering not just the numbers but the effect of any settlement now and in the future. The short term must not trump your long-term needs. FT Adviser have written a helpful, detailed explanation of the practical mechanics of how pensions are split on divorce, covering pension sharing, offsetting and earmarking.

This can be done with our assistance and support. We understand who to speak to, how to balance housing, income and pension needs in a settlement.

If you wish to, please call or email the team.

Frequently Asked Questions

What is a PODE?

A PODE, or Pension on Divorce Expert, is a specialist who values pensions as part of a divorce settlement. This is particularly important for more complex pensions, such as final salary schemes, where the true value can be very different from the headline figure.

Are pensions automatically split 50:50 in a divorce?

No. Pensions on divorce may be shared, offset against other assets, or left untouched depending on the circumstances, and any division will depend on the parties' respective needs, ages and the length of the marriage.

Why do so few divorces include a pension sharing order?

Research shows that pension sharing orders are made in only around 12% of financial orders, often because pensions feel less tangible than property or savings, and parties may prioritise other assets to avoid conflict. This can leave one party, often the one who sacrificed career progression during the marriage, significantly worse off in retirement.

Can pensions be dealt with separately from the rest of a divorce settlement?

In most cases, no. Pensions should be considered alongside housing, income and other assets as part of a single, balanced financial settlement, rather than dealt with in isolation, since focusing on one element without the others can lead to an unfair overall outcome.

Will my ex get half my pension if we divorce?

Not automatically. In most cases, the court will look at your and your ex's overall needs, the length of the marriage and how the pensions were built up, and may share pensions equally, unequally, or not at all, so it's worth getting a proper pension valuation, potentially from a PODE, before assuming any particular outcome.