Richard Kershaw examines pension misconceptions in divorce in FT Adviser
Richard’s comments were published in FT Adviser, 11 February 2026, and can be seen here.
Richard Kershaw, Partner in our Family & Relationships department, examines why pensions remain one of the most overlooked yet valuable assets in divorce.
Despite the Family Court having pension sharing powers since 2000, public awareness remains low, with only 40% of UK adults recognising that pensions can form part of a divorce settlement. This lack of understanding disproportionately affects the economically weaker spouse, typically women, who may miss out on a significant share of marital assets. Although there were 113,505 divorces in 2021, only 23,622 pension sharing orders (PSOs) were made, indicating a persistent gap in utilisation.
Richard explains that pensions are hybrid assets carrying both a present capital value and a future income stream, and must be disclosed and valued in every financial settlement. While sharing a pension requires a court order, many couples reach agreement voluntarily through mediation or solicitor negotiation before formalising it via a consent order. Accurate and up to date valuations are essential, and in anything but the simplest cases, parties should instruct a Pension on Divorce Expert (PODE), typically a single joint expert, to advise on fairness, particularly where defined benefit and defined contribution schemes are involved.
The article sets out that the court’s task is to achieve fairness, taking account of factors such as the length of the marriage, age, earning capacity, contributions and future needs. Pensions built up during the marriage are generally shared equally, while non matrimonial elements may be divided differently depending on the circumstances. Once a PSO is made, pension administrators have four months to implement it, transferring the designated share into the recipient’s pension scheme. Richard notes that some parties prefer to receive their share in other assets, such as property or cash, through a process known as offsetting, but warns this is complex and has resulted in professional negligence claims against family lawyers.
Richard also addresses common misconceptions, including the belief that pensions cannot be valued or are too complicated to divide. Most pensions, particularly defined contribution schemes, can be valued quickly, and PODE reports typically cost between £1,500 and £2,000 plus VAT. He highlights that pension freedoms may offer liquidity for recipients aged 55 or over. As understanding of pension sharing has matured over 25 years of case law, the work of the Pensions Advisory Group (PAG) has become essential in guiding practitioners to ensure pensions are properly considered in divorce settlements.
Read the full article on the FT Adviser website [subscription required]