When looking at the assets in a divorce, most couples’ immediate concern will be about the family home, and
whether it is affordable to keep it, or whether it will benecessary to sell it and divide the proceeds; many are still failing to think long-term, forgetting about the pension pots, which can be just as valuable as the property, or even more so.
Back in 2022, the University of Manchester and Office for NationalStatistics’ research found that on average, a husband’s pension could be almost x10 higher than his wife’s pension, but that few couples were discussing this disparity, and more recent research has found the average middle-aged man will hold £108,100 in pension wealth, compared to same-age women with an average of £57,900.
The Pensions Commission published an interim report in May 2026 highlighting that there are still a huge proportion of people without sufficient pension provision to see them through old age, particularly women, notwithstanding developments such as automatic enrolment for employees.
Typically, a wife will have been out of the workforce, looking after the children, and may have then returned to work on a part-time basis, or at a lower rate of salary, so on retirement, she is likely to have less pension income to meet her living costs.
This family decision, made on the expectation that, in retirement, the money would be pooled between them, will put the wife at a disadvantage if the marriage then breaks down and she has little to no independent provision.
The Divorce Courts recognise this issue and have made it clear that the wife’s (career) pension sacrifice should be remedied by sharing the husband’s pension pot, transferring a percentage of the value from his pot to her pot. The husband’s pot will be reduced, but he can then re- build moving forward if he is still working, whilst the wife’s pot will correspondingly increase, so it should pay her greater income directly in later years.
It is vital to take professional advice.
Solicitors can help to gather information and get an actuary or Pension on Divorce Expert involved, who will calculate what percentage of the husband’s pension would need to be transferred to achieve either an equalisation of capital values, or, in cases with public sector funds, a long marriage or proximity to retirement age, equalisation of future income. Once the transfer amount has been agreed, and approved by the Court, the wife may then need a financial advisor to help her invest the pension share in a new pot.
Agreeing to leave a pension alone, in exchange for property or cash, or disregarding them entirely, may well cause real hardship in old age and legal and financial advice should be taken before agreeing any final divorce settlement.
For expert advice on divorce and pensions, contact Daniel Sims on 01328 863231 or email daniel.sims@hayes-storr.com.
