A divorce expert is warning that many couples are not considering a key asset when it comes to divorce – what happens to their pension pots.<\/p>\n
As a result, lower earning partners may be missing out on up to \u00a380,000,\u00a0alongside the emotional turmoil and child custody negotiations that many experience.<\/p>\n
Separating assets, including property and possessions, are among the main obstacles faced by spouses as they look to cement amicable splitting.<\/p>\n
James Brien, founder of\u00a0Easy Online\u00a0Divorce, says the pressure of the situation often leads to them ignoring other aspects, particularly pensions, which could leave one party seriously out of pocket later on in life.<\/p>\n
\u201cGenerally speaking there’s a lack of awareness around rights to finances when it comes to divorce,” says Hames.<\/p>\n
\u201cIt\u2019s a common misconception that money matters are dealt with as part of your\u00a0divorce\u00a0proceedings. But that isn\u2019t the case – a\u00a0divorce\u00a0is only the legal ending of a marriage or partnership.<\/p>\n
\u201cThe number of pensions that are never discussed is very high and they can get overlooked for a few reasons. When it comes to\u00a0divorce, people are worried that bringing pensions into it will delay things. But in a lot of cases the pension is the second biggest asset a couple has after property.\u201d<\/p>\n
James is the author of The Mindful\u00a0Divorce: How to Heal and Be Happy After Separation, and set up Easy Online\u00a0Divorce<\/a>\u00a0in 2020 after the experience of going through his own\u00a0divorce.<\/p>\n Research by Scottish Widows put the typical cost to\u00a0divorced women at \u00a377,000 at retirement. This is because men\u2019s pensions are much larger by their mid-40s, when most\u00a0divorces happen, due to not having to take time off work for childcare.<\/p>\n Since 2022 the \u2018no-fault\u2019\u00a0divorce\u00a0has allowed marriages to end without placing blame on one party.<\/p>\n Before this you had to put the onus on a spouse for the breakdown by providing evidence of unreasonable behaviour, or you had to have been separated for two years if you both agreed to\u00a0divorce.<\/p>\n While this means it is much easier to navigate an amicable split, it\u2019s still important to agree on who gets what.<\/p>\n Pensions are considered a marital asset and are usually split between divorcing couples. But the exact split and how it will work depends on many factors.<\/p>\n New figures show 1 in 5 couples who want to separate are locked together due to money worries. In October I did a podcast special on “the finances of marriage & divorce” it’s worth a listen here https:\/\/t.co\/pCZ5iIxmiI<\/a> and on lots of podcast players.<\/p>\n
\nRecommended reading:<\/h3>\n
\n