Pensions and Divorce

Divorce is a significant life transition, one that often brings a mix of emotions and financial challenges. At Oakworth Financial Planning, we know that navigating the process of dividing assets, particularly pensions, can feel overwhelming. We’re here to help you make informed, confident decisions that support your financial well-being, now and in the years ahead.

For many couples, pensions are among the most valuable assets accumulated over the years. Often, one partner has built up a substantial pension through employment, while the other may have taken on responsibilities such as caring for the family, leading to a smaller or nonexistent pension of their own. During divorce proceedings, pensions are treated as shared assets, and dividing them fairly can have a lasting impact on both parties’ financial futures.

There are different ways pensions can be divided during a divorce, and choosing the right approach depends on a variety of factors, including the ages of both parties, the value of the pension, and future financial needs. Here’s a brief overview of common options:

This approach divides the pension at the time of the divorce, giving each partner control of their portion. It can offer a clean break and individual control over retirement planning.

Here, the value of the pension is offset against other assets, such as property. For example, one party may keep more of the pension while the other retains a greater share of the home’s value.

This option allows one party to receive benefits directly from the ex-partner’s pension when they retire. While it provides some financial continuity, it does not allow for a complete financial separation.

Our advisors will work closely with you to explain each of these options and help you find the most suitable path based on your unique circumstances.

We know that no two situations are the same, and our goal is to provide you with personalised guidance. We can help you:

Understanding the value of the pension and what’s at stake is essential. Our advisors can assist in evaluating your pension assets to ensure a fair and accurate assessment.

Decisions made now can have lasting consequences for your future financial security. We’ll work with you to model potential scenarios, so you feel confident that the choices you make align with your long-term goals.

Divorce settlements often require a team effort. We’ll work seamlessly with your solicitor or mediator to ensure that all financial and pension-related aspects are accurately represented and that you’re protected.

Divorce can be daunting, and the financial considerations may seem overwhelming, but you don’t have to go through it alone. Our empathetic, experienced team at Oakworth Financial Planning is here to support you. We’re committed to helping you move forward with a clear understanding of your finances, empowered to build the future you deserve.