Dividing finances is one of the most complicated parts of finalising a divorce, and can take several months or years to reach an agreement between ex-spouses.

Therefore, couples try to make it as easy as possible, which is why so many are leaving our their pensions in their financial settlements. 

According to a survey by Which?, 71 per cent of people who have divorced since the new no-fault divorce laws were introduced earlier this year did not include their pensions in the agreement. 

This could result in an unequal division of assets, as older married women tend to have smaller pension pots than their former husbands. 

“Many people may be deterred from a pension sharing order as they believe this will financially tie them to their former spouse after the divorce is concluded – however, this is usually not the case, as a percentage of the pension pot will be transferred at the point of divorce,” it stated.

Instead, many couples choose to offset the value of their retirement finance against another asset. However, this could be short-sighted, as even something as valuable as a property could be worth less than a pension. 

The government introduced the no-fault divorce on April 6th to reduce disagreements between ex-partners. It means couples no longer have to apportion blame for their marriage breakdown, as opposed to having to cite ‘unreasonable behaviour’ or adultery or spend two years estranged before being allowed to divorce.

According to the Ministry of Justice, this was designed to allow warring couples to “focus on key practical decisions involving children or their finances”. 

For family solicitors in Epsom when separating from your spouse, give us a call today.