When going through a divorce, one of the most common concerns is how pensions will be divided. A question we often hear is: “Will my spouse get half of my pension, even if I earned most of it before we got married?”
Let us explore how pensions are treated in divorce and what guidance exists to ensure a fair outcome.
In England and Wales, pensions are considered part of the matrimonial assets. However, that does not mean your spouse will automatically receive 50%—especially if a significant portion of your pension was built up before the marriage.
The court’s primary aim is to achieve fairness. It will consider:
- The length of the marriage (including any time cohabiting beforehand)
- The financial needs and resources of both parties
- Contributions made by each spouse (financial and non-financial)
- The standard of living during the marriage
- The value of all assets, including pensions
If you had a pension before the marriage, the court may consider “ring-fencing” that portion—treating it as non-matrimonial. However, this is not guaranteed. If the total assets (including the pension) are needed to meet both parties’ needs, the court may include the full value of the pension in the settlement.
The role of a PODE report
The Pensions Advisory Group (PAG)—a multi-disciplinary group of judges, lawyers, and financial experts—strongly recommends that in cases involving pensions, especially defined benefit schemes or where the value is significant i.e. the combined value of the parties pensions are £100,000 or more, a Pensions on Divorce Expert (PODE) should be instructed to prepare a report.
A PODE provides an independent report that helps the court understand:
- The true value of the pension
- How it can be fairly divided
- Whether offsetting is appropriate
- The impact of pre-marital contributions
This report is particularly important when one party has a much larger pension or when the pension was built up over a long period, including before the marriage, as the PODE can run calculations to exclude any pension contributions made before the marriage.
What is a PODE report and why does it matter?
Without expert input, there is a risk that pensions could be divided unfairly—either overvalued or undervalued. A PODE report ensures that both parties and the court have a clear, accurate picture of the pension’s worth and how it should be treated.
Pensions are often one of the most valuable assets in a divorce, and their treatment can significantly affect your financial future. If you are concerned about protecting your pension and ensuring a fair outcome, please get in touch with one of our family law solicitors today.