Pension guide
What happens to pensions in a divorce?
Pensions can be one of the largest assets in a divorce or dissolution and should not be ignored simply because they cannot be spent today. The options can include pension sharing, pension attachment and offsetting against other assets.
Start with the values
Ask each pension scheme for a divorce valuation.
MoneyHelper recommends obtaining a cash equivalent transfer value — CETV — for divorce or dissolution purposes from each pension provider.
A CETV can be useful, but it does not always tell the whole story. Defined benefit pensions, guarantees, different retirement ages and tax treatment can make pensions difficult to compare directly with cash, property or investments.
Where pensions are significant or complex, a pension on divorce expert can help compare the benefits and support the legal settlement process.
Option two
A pension attachment order shares future benefits rather than creating a separate pension now.
Under a pension attachment order, the pension remains in the original member's name, but an agreed share of future pension payments can be directed to the former spouse or civil partner.
The receiving person's outcome can remain linked to when and how the original member takes pension benefits, and the order can be affected by events such as death or remarriage depending on its terms and jurisdiction.
Option three
Pension offsetting leaves pensions untouched and divides other assets differently.
With offsetting, one person may retain more pension value while the other receives a greater share of other assets, such as the family home or savings.
This can look simple, but pensions and property are not directly equivalent. Pension money may not be accessible for years, can be taxable when withdrawn and can contain guarantees or inflation-linked income that a headline CETV does not fully capture.
Access, tax, guarantees and future income all affect economic value.
State Pension
The State Pension usually cannot simply be divided.
MoneyHelper notes that the new State Pension is generally not shareable on divorce. Different rules can apply to some people who reached State Pension age before 6 April 2016, including certain Additional State Pension or protected-payment rights.
If this may apply, obtain the appropriate State Pension valuation rather than assuming the State Pension forms part of the settlement in the same way as a private pension.
After the settlement
Review the retirement plan again once the pension position is settled.
New retirement income
Recalculate what your remaining or newly acquired pension benefits may provide.
Contribution needs
A pension debit or loss of expected spouse benefits may mean future saving needs to increase.
Beneficiary nominations
Review pension expression-of-wish forms after divorce or dissolution.
Wider planning
Update your Will, protection, investments, cash flow and retirement assumptions where appropriate.
Pension planning after divorce
Need to understand how a pension settlement affects your retirement?
Financial advice can help interpret the pension benefits and rebuild the retirement plan, while the legal settlement itself should be handled with appropriate family-law advice.
Book a conversationThis guide is for general information only and is not personal financial, tax or legal advice. Divorce law and pension-sharing rules differ across UK jurisdictions and individual schemes. Content checked against current MoneyHelper guidance on 15 September 2026.