- 10 September 2025
Protecting your financial future: Crucial steps to take when facing divorce
Divorce is a challenging life event, and one area that often gets overlooked in the emotional turmoil is the protection of pensions and retirement funds. While you may be focused on your immediate needs like housing and income, your future financial security can be significantly impacted by divorce. It’s essential to take proactive steps to safeguard your retirement. With this in mind, we've put together some key considerations.
1. Understand your pension rights
Begin by gathering comprehensive information about your own and your spouse’s pension arrangements. This includes workplace pensions, private pensions, and any additional retirement savings. Understanding what you are entitled to is vital, as pensions are considered marital assets and may be divided during the divorce process.
2. Seek professional advice
Consulting a Pension On Divorce Expert (PODE) can help you navigate the complexities of pension sharing and valuation. Legal advice is equally important, especially if you need a pension sharing order which can only be issued by Family Court.
3. Request a pension valuation
Ask for a Cash Equivalent Transfer Value (CETV) statement from each pension provider. This will give you a clear picture of the current worth of each pension pot and is a good starting point for fair division during settlement negotiations.
4. Explore pension sharing options
There are several ways pensions can be split, including by pension sharing order, pension offsetting, or attachment order. The most suitable option will depend on your circumstances and future needs, so discuss these possibilities with your adviser and solicitor.
5. Update your retirement plans
Once the divorce settlement is agreed, it’s wise to revisit your retirement goals. Adjust your contributions, investment strategies, and timelines as needed to stay on track for a comfortable retirement.
6. Review beneficiaries and documentation
Don’t forget to update the beneficiaries on your pension schemes and life insurance policies. Ensuring your wishes are reflected in these documents can prevent future complications and give you peace of mind.
7. Plan for the long term
Finally, keep your focus on long-term financial health. Regularly review your pension arrangements and seek ongoing advice as your situation evolves, ensuring you remain secure and well-prepared for retirement.
Protecting your pension and retirement income during divorce may seem daunting, but taking these steps will help you make informed decisions for your future. With the right support and planning, you can look forward to a financially stable retirement, whatever life brings.
Book a free 15-minute engagement meeting with one of our independent experts to discuss your individual circumstances.