Divorce Pension Calculator UK
Estimate how your pension might be divided in a UK divorce. Calculate pension sharing, offsetting, and the impact on your future retirement income based on your CETV.
Pension & Settlement Details
Enter your pension values and proposed settlement terms to see the financial impact
The Cash Equivalent Transfer Value (CETV) provided by your pension scheme.
How many years until you plan to draw your pension. Used to project future growth.
Average annual growth. Conservative: 3-4%, Moderate: 5-6%, Aggressive: 7%+.
The percentage of the pension pot being transferred to your ex-spouse via a Pension Sharing Order.
If you are keeping 100% of your pension by giving up other assets (like house equity), enter that asset value here. Leave as 0 if not offsetting.
Pension Settlement Results
Breakdown of the pension split and projected retirement income
Enter your pension values and settlement terms above, then click Calculate Pension Split to see the financial impact.
UK Divorce Pension Settlement Options
Understanding the three main ways pensions can be handled in a UK divorce is crucial for negotiating a fair financial settlement.
| Settlement Option | How It Works | Context / Details |
|---|---|---|
| Pension Sharing Order | Immediate Split | A percentage is transferred directly to your ex-spouse’s own pension. Provides a clean break. |
| Pension Earmarking | Deferred Payment | Ex-spouse receives a portion of your pension only when you start drawing it. No clean break. |
| Pension Offsetting | Asset Swap | You keep your pension, but give up an equivalent value in other assets (e.g., the family home). |
| State Pension | Cannot be shared | Basic and New State Pensions cannot be divided. May affect future entitlement based on NI record. |
| Cash Equivalent (CETV) | Valuation Metric | The standard valuation used by courts. For final salary schemes, this may not reflect true income value. |
Divorce Pension FAQ
Everything you need to know about how pensions are divided, valued, and protected in UK divorce proceedings.
In the UK, pensions are considered matrimonial assets and can be divided using a Pension Sharing Order, Pension Earmarking Order, or Pension Offsetting. The court aims for a fair outcome based on the length of the marriage, needs of both parties, and other assets. Generally, only the pension accrued *during* the marriage is considered for division, though pre-marital pension can sometimes be included if necessary to meet needs.
Pension Sharing transfers a percentage of your pension pot directly into your ex-spouse’s own pension scheme immediately, creating a clean break. Pension Earmarking (attachment) means your ex-spouse receives a portion of your pension benefits only when you start drawing them, meaning no clean break. Pension Offsetting means you keep your entire pension, but give up an equivalent value in other assets, like the family home or savings.
No, the basic State Pension and the new State Pension cannot be shared or offset in a divorce. However, if you were married or in a civil partnership for at least 10 years, you may be able to claim State Pension based on your ex-spouse’s National Insurance record if it results in a higher payout for you.
Yes, this is a very common arrangement. One spouse retains the full value of their pension pot, while the other spouse keeps the family home (or a larger share of the equity). This is often preferred by older couples who are close to retirement and do not have the time or capacity to rebuild their pension savings from scratch.
The CETV is the estimated cash value of your pension rights on a specific date if you were to transfer it to another scheme. In divorce proceedings, the court uses the CETV provided by your pension provider to determine the total value of the pension pot that is available for division. For defined benefit (final salary) schemes, the CETV can be significantly higher than the actual cash value due to the guaranteed income it provides.