Pensions are often the second largest asset after the family home, and sometimes the largest. They can only be divided by a court order.
The three mechanisms
- Pension sharing: a percentage of one pension is transferred to the other spouse, giving a clean break.
- Offsetting: one keeps the pension, the other takes more of another asset such as the house.
- Attachment: part of the pension income or lump sum is paid across when it is drawn. Rarely used now.
Why CETV can mislead
The cash equivalent transfer value of a defined benefit scheme, such as an NHS or teachers' pension, can understate the real value of the income it produces. In those cases an actuary's report is often worth the cost.
This article is general information about the law of England and Wales, not legal advice. For advice on your situation, speak to a solicitor.