National Divorce Day marks a time when legal professionals report a noticeable increase in divorce enquiries, often coinciding with post-holiday tensions and the onset of a new year.
While property division frequently dominates divorce negotiations, the significance of pensions remains underestimated despite being one of the most valuable marital assets.
Eleanor Levy, Chief Commercial Officer at now:pensions, highlights that pensions are often the second most valuable asset after the family home, yet they are frequently left out of settlement discussions.
This oversight contributes to the gender pensions gap, with women retiring on average with just £69,000 in pension savings, compared to £205,000 for men.
Levy emphasises the importance of ensuring pensions are included in settlement negotiations to avoid long-term financial instability for the spouse who misses out.
By sharing these savings equitably, divorcing couples can significantly improve financial outcomes for women, who are disproportionately affected by pension disparities.
The gap in pension savings reflects broader systemic inequalities, including differences in earnings, career breaks, and part-time work often undertaken by women.
Failing to account for pensions in divorce settlements could leave one partner struggling financially for decades, particularly in retirement.
Understanding the true value of all marital assets, including pensions, is crucial for achieving a fair and equitable settlement.
Legal and financial professionals urge divorcing couples to seek expert advice to ensure all assets are properly evaluated and divided.
Addressing pension inequality during divorce proceedings could help narrow the gender pensions gap, supporting greater financial security for women.
This National Divorce Day, let’s shine a light on the importance of financial fairness and equality in the divorce process.
