Are pensions considered as an asset and subject to division in the event of a divorce?

The pension accumulated by one party or both parties is typically viewed as a shared asset, making it eligible for division in the event of a divorce. Those who have diligently contributed to their own pension may feel disgruntled about having to divide it with a spouse who hasn't built a pension fund. Conversely, the individual seeking a share of their spouse’s pension might believe they have a rightful claim, particularly if they were unable to accumulate a comparable pension due to career gaps, such as taking time off to raise a family.

It's crucial to recognise that fairness is a central principle in financial settlements during divorce, and this extends to the division of all assets, including pensions, between both parties. While an equal distribution is often the starting point, adjustments may be made based on the unique circumstances and needs of each party.

Considerations in the division of marital assets encompass:

· The income and earning potential of each spouse.

· The financial needs of both parties.

· Any physical or mental health considerations for either spouse.

· The needs of any dependent children.

· Contributions made by each individual to the marriage.

In the UK, all pensions can be shared, with the exception of State pension.

It is important to note that there is no specific time limit for making financial claims on your former spouse after a divorce, unless a legally binding settlement has been reached. Similarly, there is no timeframe for them to make financial claims against you.