Pension Sharing or Offsetting Orders
Pensions are one of the most valuable—and often overlooked—assets in a divorce. Whether you’re approaching retirement or still early in your career, understanding how pensions are treated in divorce is essential to achieving a fair financial settlement.
In England and Wales, pensions are considered part of the matrimonial assets and can be divided through two main routes: pension sharing and pension offsetting. Pension sharing allows a portion of one spouse’s pension to be legally transferred into the other’s pension scheme. Offsetting, on the other hand, allows one spouse to keep their pension in full, while the other receives more from the remaining assets—such as the home or savings—to balance the difference.
These decisions have long-term consequences. Valuing pensions correctly (especially defined benefit or final salary schemes) requires input from a financial expert or actuary. Some state pension benefits may also be included depending on the circumstances.
If pensions are not dealt with properly during the divorce, you may lose out on crucial retirement income. A fair and secure division now helps ensure your financial stability later in life.
Frequently Asked Questions
Yes. Pensions built up during the marriage are part of the matrimonial pot and can be divided by court order—either through pension sharing or offsetting.
Pension sharing allows a portion of one spouse’s pension to be transferred into the other’s pension pot, giving each person their own independent retirement fund.
Offsetting means one spouse keeps their pension, while the other receives an equivalent value from different assets—such as property or cash savings—as part of the financial settlement.
Your pension represents your financial future—don’t leave it to chance. AAGA Solicitors ensures your pension rights are properly valued, negotiated, and protected, helping you secure peace of mind today and stability for tomorrow.