Can my pension be protected from a claim by my spouse on divorce?

Pensions, like other forms of investment, may be included as matrimonial assets for division on divorce. In some cases it may even be the second largest asset after any property owned.

There are a number of ways a pension can be divided between the divorcing couple and it can often be a complex process.

Pension sharing orders came into force in 2000, and these have become a popular option.  They mean the court can split a pension at the time of divorce and allocate a part of it to your spouse straight away.

Another option is a pension attachment order.  This means a portion of the pension becomes your spouse’s, and then when it becomes payable is paid to your ex-partner along with any lump sum.  If your ex were to remarry, this would then terminate.

However, this doesn’t necessarily mean that your spouse is automatically entitled to part of your pension if you decide to divorce.  There are certain circumstances where you may be able to protect it from any claims against it.

It could be possible to argue that it shouldn’t be shared if your pension was accrued entirely or in part before your marriage.

It may also be possible to avoid sharing your pension if you offer to give your spouse a greater share of other available assets, called offsetting.  An example of this could be that you offset a pension claim by giving your spouse a greater share of the equity in your matrimonial home.  This is a popular way of settling pension entitlement.

We would advise seeking legal advice as soon as you decide to divorce in order to discuss the options open to you.

If you would like to discuss this or any other family law matter, please contact Janine Hutson on 01772 258321, or at janine.hutson@harrison-drury.com