Divorcing over 50 can have a serious impact on your pension and retirement plans.
Our family law team in Wirral explains what to watch out for — and how to protect yourself.
Divorce is never straightforward, but ending a marriage later in life brings a particular set of financial
challenges that are easy to overlook in the middle of an already stressful process.
At Burd Ward Solicitors, we work with clients across the Wirral and Merseyside who are navigating divorce at 50,
60, and beyond. One thing we see time and again is that the financial consequences — especially around pensions
and retirement income — only become apparent further down the line, often when it’s too late to change course.
The Later Life Divorce Problem
Divorces among couples aged 55 and over are increasingly common, and they come with a financial complexity that
younger divorces simply don’t carry. When you’re in your 30s and the marriage ends, there’s time to rebuild.
When you’re approaching or already at retirement age, the window to recover financially is much narrower.
This isn’t scaremongering — it’s a practical reality that should shape how you approach a settlement from the
very beginning.
Pensions Are Often the Biggest Asset in the Room
The marital home tends to dominate divorce negotiations, and understandably so — it’s visible, tangible, and
often emotionally significant. But for couples in later life, the combined pension pot can be worth just as
much, sometimes considerably more.
Despite this, pensions are routinely underweighted or ignored during settlement discussions. Many people simply
don’t realise that pension assets built up during a marriage are generally considered matrimonial assets —
meaning they can and should be part of any fair settlement.
There are several ways a pension can be dealt with in divorce:
-
Pension sharing — a proportion of one spouse’s pension is transferred into a separate pension
in the other’s name -
Pension offsetting — one spouse keeps their pension in full, and the other receives a higher
share of another asset (such as equity in the property) to compensate -
Pension attachment orders — payments from a pension are directed to the former spouse when
they fall due (less commonly used)
Each option has different tax, income, and timing implications. What looks like a generous settlement on paper
can leave one party in a far weaker position once they actually reach retirement.
Why Early Advice Matters
The decisions made during divorce proceedings are largely irreversible. Once a consent order is sealed by the
court, reopening it is very difficult. That’s why it’s so important to take proper advice before agreeing to
anything — not after.
We always recommend that clients going through a later life divorce consider working with an independent
financial adviser alongside their legal team. A solicitor can advise on your legal entitlements and help
negotiate a fair split; a financial planner can model what that split actually means for your income in
retirement — accounting for things like state pension age, drawdown rates, and the effect of inflation over
time.
The two perspectives working together produce much better outcomes than either can achieve alone.
Questions Worth Asking Early
If you’re going through a divorce at 50 or older, here are some things worth raising at the outset:
- Do I know the current value of all pension assets — mine and my spouse’s?
- Have I received a state pension forecast?
- If I accept the house in lieu of a pension share, can I realistically fund my retirement?
- What income will I actually need in retirement, and from where?
- Am I aware of what I’d be waiving if I don’t pursue a pension claim?
These aren’t questions to leave until the final stages of negotiation. They’re questions to have answered before
you’re in the room making decisions.
Frequently Asked Questions
Can my spouse’s pension be included in our divorce settlement?
Yes. Pensions built up during a marriage are generally treated as a matrimonial asset, regardless of whose name
they are in. This includes workplace pensions, personal pensions, and — in some cases — defined benefit (final
salary) schemes. The court has the power to make a pension sharing order as part of the financial settlement.
What is a pension sharing order?
A pension sharing order is a court order that transfers a specified percentage of one spouse’s pension to the
other. The receiving spouse gets their own independent pension entitlement, which they can manage separately.
It’s one of the cleanest ways to achieve a fair division of pension wealth, though it does involve administrative
charges from the pension provider.
What’s the difference between pension sharing and pension offsetting?
With pension sharing, the pension itself is split. With offsetting, one spouse keeps the pension intact but the
other receives more of a different asset — usually equity in the family home — to make up for it. Offsetting
can seem simpler, but it carries risk: property value and pension value don’t always move in tandem, and giving
up a pension income in exchange for housing equity doesn’t automatically produce a secure retirement.
Does it matter whose name the pension is in?
No. It doesn’t matter whether the pension is in your name or your spouse’s — both can form part of the financial
settlement. If you gave up work or reduced your hours to raise children or support the family, you may have a
strong claim on a pension you never directly contributed to.
What is a CETV and why does it matter?
CETV stands for Cash Equivalent Transfer Value. It’s the figure your pension provider gives to represent the
current lump sum value of your pension benefits. During divorce, CETVs are used to compare the value of pension
assets against other assets like property. It’s worth knowing that CETVs can sometimes understate the true value
of a pension — particularly defined benefit schemes — so specialist advice can be important before using them as
the basis for negotiation.
Is it too late to claim a pension after divorce is finalised?
Generally, yes. Once a consent order has been approved by the court and neither party has reserved pension
claims, the ability to go back and make a claim is extremely limited. This is one of the most common sources of
regret we hear from people who handled their own divorce or didn’t take full legal advice at the time. Getting
it right first time is essential.
Do I need a solicitor to deal with pensions in a divorce?
You’re not legally required to use a solicitor, but pension division is one of the most technically complex
parts of any financial settlement — and one of the most consequential. Mistakes here can affect your income for
the rest of your life. We’d always recommend taking proper legal advice, and in many cases a referral to an
independent financial adviser as well.
We’re Here to Help
Our family law team at Burd Ward Solicitors offers straightforward, plain-English advice to clients going through
divorce at any stage of life. If you’re concerned about how divorce might affect your financial future —
including your pension and retirement plans — we’d be happy to have an initial conversation.
Contact us today to speak with a member of our family law team in Wallasey, Wirral.