Divorce and Your Pension: What You Should Know

Going through a divorce can be a difficult experience, and confusion about your finances is the last thing you need. In this article, we explain how pensions are usually handled.

A private pension (like a workplace or self-invested pension) is often considered to be a joint asset rather than an individual one. This is because, during divorce proceedings, pensions are normally viewed as having built up their value over the course of a marriage or civil partnership.

Pensions can often hold considerable value - sometimes higher than the value of other assets like shared property. That’s why, in most circumstances, private pensions are included as part of a divorce.

How does where I live in the UK impact how my pension is divided?

If you live in Scotland, courts usually only count the value of pension savings built up during your marriage. In other parts of the UK, the total value of your pension savings up until the date of your divoce is usually counted.

How can I determine the value of my private pension?

Private pensions are valued slightly differently, depending on whether you have a defined contribution or a defined benefit pension. 

A defined contribution pension is a pension pot that you pay into and often your employer, which is then invested. It’s usually easy to find out the value of your defined contribution pension from your workplace or pension provider – as the money is held in an individual pot for you.

When you’re going through divorce proceedings, you will need to request a Cash Equivalent Transfer Value (also known as a ‘CETV’) from your pension provider. If you are already receiving your pension, your pension provider may charge you for a CETV, and it can take up to 3 months for one to be shared with you. 

A defined benefit pension is a retirement plan that guarantees a regular consistent income related to your salary and length of service. It may be based on your final salary or career average. It can be harder to determine the value of a defined benefit pension as it is not held in an individual pension pot and could change based on a number of factors. 

You must still request a CETV, and, as some defined benefit pensions are not transferable, you may need to add your ex-partner to your pension scheme.

In both cases, it’s advisable to seek independent financial advice.

​​​​​​​How are private pensions divided?

Pensions can be divided between you and your partner in one of three ways:

1.    Pension offsetting

The value of your pension is compared against any other assets you have – like your house or savings. From there, negotiations take place to ensure a fair deal for both you and your ex-partner. For example, you may be able to keep all your pension in exchange for your ex-partner receiving a larger portion of the house value. 

2.    Attachment order or ‘earmarking’

One person agrees to pay the other some of their pension income when they start receiving it. This allows the person without the pension to receive regular income or a lump sum from the other’s pension in the future.

If you’re the one without the pension, there are a few downsides to this option. The original pension owner is still in control of it, so they can make a lot of decisions without you – like what to invest in or when to start drawing money.

3.    Pension sharing

The pension is split at the time of the divorce, with some or all of one person’s pension being transferred into a new or existing pension that belongs to the other person. In Scotland, you agree on a fixed amount of money, while in the rest of the UK, you agree on a percentage.
This is often the preferred choice as it gives both people total control over their pension savings and offers them a clean break.

​​​​​​​Can the State Pension be shared on divorce?

The new State Pension can’t be shared if you divorce. However, if you have any additional State Pension – which is a payment you might get on top of your State Pension if you’re eligible – the court can decide to share that between the two of you.

It may also be possible for one person to use the other’s National Insurance contributions to boost their own State Pension, as long as they don’t remarry or enter a civil partnership before they reach State Pension age.
 

​​​​​​​What to do with your pension after a divorce

Although divorce can be a highly challenging period both in terms of your personal life and your finances, it is possible to regroup. Here are a couple of things you may wish to consider to help you feel more in control of your financial circumstances.

Assess your contributions and long-term plans

As a divorce can reduce the amount you have in your pension, it’s a good idea to review your long-term financial plans and pension contributions. This can help you make better decisions about the amount you should invest in your pension, the amount of risk you’re prepared to take with your pension investments, and whether to explore other saving or investment avenues.

If a clean break was obtained during your divorce proceedings, your ex-partner cannot usually access new pension savings. However, it’s important to note that if a clean break was not obtained, your ex-partner may be able to claim in future.

Review your beneficiaries

Your pension provider normally decides who your pension goes to when you die. The beneficiaries you list on your plan will heavily influence that decision. For that reason, it’s important to update the beneficiaries on your plan after a divorce if your wishes have changed. 

From April 2027, the government have announced their intention to include unused pension savings when calculating the value of estates and could be subject to inheritance tax. The full details of how this will work are still to be confirmed.

If you’re a Standard Life customer, you can do this easily online or by getting in touch with us.

​​​​​​​Need some help?

Going through a divorce can be a difficult time. Gaining clarity on your financial situation can help to relieve money worries. 

If you’re a Standard Life customer, we can support by providing trusted information about your pension.

In addition, it’s a good idea to seek both legal and independent financial advice during this time. MoneyHelper offers free and impartial guidance about your pension options during the early stages of divorce.

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The information here is based on our understanding in April 2026 and shouldn’t be taken as financial advice.

Standard Life accepts no responsibility for information only external websites. These are provided for general information.

A pension plan is an investment. Its value can go down as well as up and could be worth less than was paid in.