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Retirement:
What happens if I get divorced?

Pensions are often the second biggest asset to be considered in divorce proceedings after the family home.

A spouse, often the wife, may have given up work to look after children and be relying on her husband�s pension when he retires and a surviving spouse�s pension after his death. These benefits will be lost on divorce and this loss will be taken into account in the financial provisions of the divorce (called ancillary relief). Depending on her age and earning capacity, the wife may, or may not, be able to build up her own pension fund to support her in her retirement.

It should be noted that the spouse with the lower (or nil) pension provisions has no automatic entitlement to a share of the other spouse�s pension. All factors are considered and if, for example, the wife has received the family home (in order to live there with the children) the husband�s pension may be left intact in the overall division. The equity in the family home can then be utilised to provide financial support once the wife reaches retirement age.

If you have �lost� a substantial part of your pension(s) following a divorce, professional advice can assist you to �get back on track�. Even if you have retained all your pension provisions you will need to consider changing your nominations or who receives the fund or the death in service benefits if they were originally intended to go to your ex-spouse and this is no longer appropriate.

You can read more about this in our Separation and divorce section.