Divorce can be one of the most emotionally and financially challenging times in a woman’s life. Beyond the emotional strain, there are serious financial decisions to be made — and pensions are often one of the most overlooked assets in the process.
If you’re a woman facing divorce and worried about your pension, know that you’re not alone. Many women, particularly those who have taken time out of the workforce to raise children or support their partner’s career, find themselves uncertain about their financial future during a divorce.
In this article, we’ll explore how pension sharing works, why it’s particularly important for women, and how you can take control of your retirement finances with the right support and guidance.
Mary’s Story: A Common Scenario for Many Women
Mary*, a client in her mid-fifties, contacted me during the early stages of her divorce. Like many women, Mary had dedicated years to her family and home, with only limited pension savings of her own. Her husband, however, had a substantial pension built over decades of employment.
Mary was understandably anxious. She didn’t want to start over financially in her fifties, but she also didn’t know what she was entitled to — or how to access it. Through professional advice and a pension sharing arrangement, Mary was able to secure a fair portion of her husband’s pension and begin building her own retirement future.
What Is Pension Sharing and How Does It Work?
Pension sharing is a legal option available during divorce or the dissolution of a civil partnership. It allows a pension to be split at the time of divorce, so each partner receives their own pension pot to manage independently.
The court issues a Pension Sharing Order stating what percentage of one party’s pension the other is entitled to. This percentage is usually based on the transfer value of the pension and can be a crucial financial resource for women who may not have had the opportunity to build substantial pension savings themselves.
Why Pension Sharing Matters for Women
For many women, especially those who have taken career breaks or worked part-time, retirement savings may not reflect the full value of their contributions to the household. Pension sharing offers an opportunity to secure a more equitable financial outcome.
Benefits of Pension Sharing for Women:
If you’re a woman facing divorce and worried about your pension, know that you’re not alone. Many women, particularly those who have taken time out of the workforce to raise children or support their partner’s career, find themselves uncertain about their financial future during a divorce.
In this article, we’ll explore how pension sharing works, why it’s particularly important for women, and how you can take control of your retirement finances with the right support and guidance.
Mary’s Story: A Common Scenario for Many Women
Mary*, a client in her mid-fifties, contacted me during the early stages of her divorce. Like many women, Mary had dedicated years to her family and home, with only limited pension savings of her own. Her husband, however, had a substantial pension built over decades of employment.
Mary was understandably anxious. She didn’t want to start over financially in her fifties, but she also didn’t know what she was entitled to — or how to access it. Through professional advice and a pension sharing arrangement, Mary was able to secure a fair portion of her husband’s pension and begin building her own retirement future.
What Is Pension Sharing and How Does It Work?
Pension sharing is a legal option available during divorce or the dissolution of a civil partnership. It allows a pension to be split at the time of divorce, so each partner receives their own pension pot to manage independently.
The court issues a Pension Sharing Order stating what percentage of one party’s pension the other is entitled to. This percentage is usually based on the transfer value of the pension and can be a crucial financial resource for women who may not have had the opportunity to build substantial pension savings themselves.
Why Pension Sharing Matters for Women
For many women, especially those who have taken career breaks or worked part-time, retirement savings may not reflect the full value of their contributions to the household. Pension sharing offers an opportunity to secure a more equitable financial outcome.
Benefits of Pension Sharing for Women:
- ✅ A Clean Financial Break: Each partner receives a separate pension pot, helping to avoid future financial entanglement.
- ✅ Financial Independence: You can decide where and how to invest your share of the pension.
- ✅ Protection: Your pension share is protected from changes in your ex-partner’s circumstances, such as remarriage or death.
- ✅ Security in Retirement: You gain a solid foundation to build a retirement that is truly your own.
Things to Consider Before Agreeing to a Pension Share
While pension sharing is often a good option, it’s important to be aware of potential downsides:
- The person whose pension is being shared will see a reduction in their overall pension savings.
- There may be fees for financial advice or difficulties if the pension provider does not easily facilitate pension sharing.
- Some pension schemes are complex and require expert valuation and advice.
What to Do After a Pension Sharing Order
Once a pension sharing order has been granted, it’s vital to seek independent financial advice for women after divorce. A qualified financial adviser can help you:
- Evaluate whether to remain with the current pension provider or transfer to a new one.
- Understand your investment options, risk tolerance, and retirement goals.
- Set up a new pension plan that reflects your personal financial future.
In my experience, initial meetings are focused on education and empowerment. We take the time to explain how investments work, what options are available, and help you make informed decisions — without pressure or jargon.
Supporting Women Through Divorce and Financial Change
Going through a divorce is never easy, but you don’t have to face these financial decisions on your own. I specialise in supporting women during divorce, helping them understand and make the most of their pension sharing entitlements. My advice goes beyond helping you to choose the right investments, it will help you to understand your financial position in the years to come so that you can take the right steps to secure the retirement you want.
If you're worried about your pension or unsure where to start, I offer a free, no-obligation consultation to discuss your options. It’s a chance to talk openly, ask questions, and begin building your financial future with confidence.
Please note:
The value of investments and the income from them can fall as well as rise. You may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Pensions are a long-term investment. The tax treatment of pensions depends on individual circumstances and may be subject to change in the future.
This article is for information purposes only and does not constitute financial advice. You should seek independent financial advice before making any decisions about your pension or investment options.
Ready to Take Control of Your Financial Future?
Let’s talk. Get in touch today for a free chat about pension sharing after divorce and how to make informed choices that protect your retirement.
Kat – IFA/Director
