Divorce and the best way to treat pension pots

The tricky task of dividing pensions fairly in a divorce and stamping out ‘unintended discrimination’ against women is tackled by top lawyers in a newly published guide. Pensions are often a family’s second most valuable asset after a home, but the legal experts found a widespread lack of confidence among colleagues in the profession about how to split them, and a substantial proportion of unfair outcomes.
Previous research has found divorcing women could be forfeiting thousands of pounds of pension cash, and a charity has called for lawyers to prompt couples to discuss the topic during the process. The new good practice guide seeks to address this by demystifying pensions jargon, encouraging fairer settlements, and reducing the risk of claims against lawyers by former clients. The aim of this guide is to help judges and practitioners navigate their way with more confidence through the tricky field of pensions on divorce, and ultimately improve the fairness of outcomes for those going through divorce.
Additionally, the Government plans to tackle the causes of financial inequality in later life by intervening at points where women are likely to face disadvantage from school to employment, divorce and retirement. It will target inequalities in the labour market that lead to women to retire, on average, with pension savings up to 40% lower. This will include by reviewing equal pay legislation, redundancy protection and maternity discrimination.

Recommended Posts