The pension provider’s latest piece of research revealed that:

• 7 in 10 couples don’t consider how they will divide their pensions
• 10% of women end up reliant on a state pension for their income
• 13% of people are more concerned about losing a pet than missing out on their fair share of a pension pot

Despite neglecting pensions, separating couples appear to be fighting to get their share of all other marital assets. Over 50% of married couples told researchers that they would battle to ensure they received a fair share of property, while 36% are concerned about splitting savings evenly.

Why are women adversely affected?

Scottish Widows believes that women could be missing out on as much as £5 billion by neglecting to fairly divide pensions during divorce. But why do women lose out more than men? The pension provider speculates that it’s because in general, women tend to be less prepared than their partners when it comes to retirement planning. Scottish Widows’ Catherine Stewart elaborated further:

“Women’s retirement prospects are worse than men’s. The persistent gender pay gap, maternity leave and career breaks can all hold back women’s earning potential and this often impacts pension savings. Relationship breakdowns can leave people vulnerable but, quite simply, they’re also throwing significant sums of money down the drain.

“It is important that everyone – whether single, married or divorced – take steps to understand their finances and prepare for their independent future should a relationship break down. We would urge men and women to better understand the legalities around what happens to pension pots during divorce proceedings, as often they are the second largest, if not the largest asset a couple owns.”

Why aren’t divorcing couples talking about pension division?

Some divorcing couples may not be receiving the right legal advice, so they simply overlook pensions when planning for separation – despite the fact that this oversight could cost them (or at least one of them) dearly further down the line. Many people either don’t realise that some pensions can be complicated to navigate, or it is the complexity of the arrangements that puts them off starting a proper discussion about how to divide pensions. Other couples worry about the cost of sorting out a complicated pension arrangement, but experts advise that it should be seen as a very sound investment indeed.

Wirral divorce solicitors Tracey Miller Family Law have extensive experience in all aspects of divorce, including the division of assets, property and pensions. No matter how straightforward or complicated your affairs, our experienced team can help to streamline the process and ensure a fair and timely resolution. Get in touch for an initial discussion about your circumstances, and to see how we can help.