Can Divorce Affect Your Pension?

Thanks to the new no-fault divorce legislation which came in earlier this year, achieving a more amicable separation between parties getting a divorce should be easier and hopefully less stressful – although the potential implications of divorce on pensions remain the same.

Divorce & Pensions

Although divorce and pensions are treated as separate entities by the marital courts, starting divorce proceedings can lead to financial problems if both sides don’t fully understand the consequences a divorce can have on pensions.

Sometimes, pensions can be the most valuable asset a married couple has, or it may be that pension provisions are uneven with one partner having a far more valuable pension – which is why getting a divorce is far from straightforward when it comes to the impact this might have on pensions.

Pension-Related Implications Of Divorce

As a guide, your pension could be affected by your divorce in many ways, including:

• You could be worse off in retirement
• Your most valuable asset could become less valuable

Make sure the divorce settlement you reach provides the financial stability you need, now and in the future. As pensions are complex, you should seek independent financial advice to ensure you can plan well for your life in retirement.

If you would like legal advice or support about divorce and the implications on your pension, or about any other aspect of divorce, please contact our specialist divorce solicitors at our Chorlton office on 0161 860 7123 or email chorlton@hlfberry.com or at our Failsworth office on 0161 681 4005 or email failsworth@hlfberry.com