On 2 January 2024, the Pensions and Lifetime Savings Association (PLSA) updated guidance on pension sharing orders, prompting crucial discussions about pensions in divorce proceedings.
Often overlooked due to their complexity, pensions play a significant role in financial settlements. Research shows a substantial gender disparity in pension wealth, with women frequently losing out post-divorce. Ignoring pensions can cost women significantly in retirement.
Only 12% of financial orders on divorce include pension-sharing orders. In practice, it is common for parties to overlook or forego their claims on their ex-spouses’s pension, perhaps in favour of keeping the family home. This trade-off puts the party at risk of swapping long-term financial security for short-term stability.
What next?
Seeking expert legal and financial advice is crucial to navigate these complexities. At Oglethorpe Sturton & Gillibrand, we offer a no obligation fixed-fee meeting for all new family law clients. To arrange a meeting, please contact 015242 71388 or e-mail family@osg.co.uk.
