What do I need to do about our pensions?

[BeautifulElephant]

My husband and I are breaking up amicably. Hopefully we can do it without using solicitors., Is that even possible? Married 8 years. Children are 6 and 3.

I've noticed on here people have mentioned sorting something with their pensions. This isn't something I've considered at all. What do I need to work out? Do? I was on mat leave for 1 year with each child and I've been working part time self employed and paying into a private pension the rest of the time.

Any info, links or insight greatly appreciated I feel like I don't know know anything.

The value of your pensions needs to be included in any division of assets.
Pensions can be very valuable.
Make sure you get a financial consent order permanently separating you financially.

www.sharingpensions.co.uk/penaudit3.htm
www.advicenow.org.uk/pensions
www.mediateuk.co.uk/the-ultimate-guide-to-pensions-on-divorce/
www.nuffieldfoundation.org/news/new-good-practice-guide-addresses-shortfall-in-understanding-of-how-to-treat-pensions-on-divorce

Pensions are assets of the marriage (along with others for example, the former marital home and stocks and shares etc.).
All of the assets of the marriage should be disclosed.
A Form E is used for this.
www.gov.uk/government/publications/form-e-financial-statement-for-a-financial-order-matrimonial-causes-act-1973-civil-partnership-act-2004-for-financial-relief-after-an-overseas

Each of the assets should be valued. Pensions companies provide a CETV (Cash Equivalent Transfer Value) for each pension.

A CETV is not the only way to value a pension and there are alternatives.
See here
www.thepensionsregulator.gov.uk/en/document-library/scheme-management-detailed-guidance/administration-detailed-guidance/transfer-values

An actuary (pensions on divorce expert or PODE) can provide a full report on the value of the pensions and advise on pension sharing, pension attachment, offsetting pensions orders.
www.collinspensionactuaries.co.uk
No relation - useful website

Once all the assets disclosed and valued, the splitting of assets should be considered.

I'm not an expert on divorce or pensions on divorce. The links I've sent are useful. Legal advice can be gained from rightsofwomen.org.uk

Oops, that was the wrong link for Form E, sorry. See here for advice on Form E. www.advicenow.org.uk/guides/how-apply-financial-order-without-help-lawyer

I think this is the Form E but check before using. assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/953463/form-e-eng.pdf

If your husband is the higher earner, it is likely that his pension is far more valuable than yours. Also that he is the higher earner because you prioritised his career over yours for the sake of the children.

It's also likely when you split, that you will end up with the majority of the childcare, and so a longterm hit on your career - and ability to save more into your pension.

So years and years after your divorce, when you come to retire, you will have a poor pension all as a consequence of this marriage.

Bottom line - you need a fair pension split. If your husband kicks off then 1. You aren't amicable and 2. You know his pension is where his money is. Money he made because you were doing mat leave/working part time for the sake of the family.

When splitting the assets of the marriage (which includes pensions) www.legislation.gov.uk/ukpga/1973/18/section/25 applies -
the income, earning capacity, property and other financial resource which each of the parties to the marriage has, or is likely to have in the foreseeable future.

As I understand it first consideration is given to the welfare (while a minor) of any child of the family who has not yet attained the age of eighteen.

This is a useful and supportive post for the OP to consider, thanks.

www.moneyhelper.org.uk/en/family-and-care/divorce-and-separation/divorce-or-dissolution-how-we-can-help-with-your-pension

They offer a free advice session.

Thank you so much, I'll look into it all.

Take good care of yourself and post again if / when you need to :)

just remembered this rightsofwomen.org.uk/get-information/family-law/divorce/

and this
rightsofwomen.org.uk/wp-content/uploads/2022/06/Financial-arrangements-on-divorce.pdf

I would get advice from a lawyer, OP. It's always the higher earner that seems to want it to be done amicably i.e making sure you don't get too much. It doesn't have to be adversarial but you do need to know what you are entitled to.

This division of assets will be very important to your future.

This is a helpful post.

As I understand it there are 2 aspects - the divorce and the financial settlement. @silentpool has helpfully suggested getting legal advice - and highlights this is very important for the financial settlement aspect, and your future.

This link gives an indication of hourly rates for solicitors
www.gov.uk/guidance/solicitors-guideline-hourly-rates

Some family law solicitors offer an initial free consultation.

You can also look into getting a fixed fee retainer.

Some organisations offer free legal advice from solicitors and barristers. e.g.
rightsofwomen.org.uk/get-advice/

On their FAQs page..."Our Legal Officers and Volunteer legal advisers are all solicitors and barristers"

Also, Mumsnet helpfully say at the top of the thread (in case you missed it) "For legal advice on divorce and separation, many Mumsnet users have pointed to Advice Now's guides" - and they provide a link.

www.advicenow.org.uk/tags/separation-divorce-and-dissolution-civil-partnerships

Pensions can play a very significant part of a divorce negotiation. Sometimes they don’t really make a lot of difference to the end settlement and aren’t worth valuing or arguing over.

it is always worth getting some basic legal advice to help inform the first stage of the process which is mediation and disclosure of financials. This will give you a sense of where the settlement will land and how he is going to behave. You can then take this information to your solicitor for informed professional advice.

Although you were married for 8 years, for divorce purposes it is the length of the relationship that matters. If you lived together for period then it counts. I say this because you in sort of between a short and long marriage which matters.

Pension provision for later in life is an important need. One a lot of women throw away in order to stay in a family home they don’t need and can’t afford (stopping them from saving towards their own pension).