Every Tuesday, we get an expert to answer your financial problems or consumer disputes – you can WhatsApp us here or email moneyblog@sky.uk. Today’s is…
My wife and I had an explosive argument a few months ago that resulted in her mentioning the d-word. We haven’t discussed it since and have committed to working things through, but I don’t see much hope. My question is: I understand our shared assets will have to be divided but my wife has never contributed much to her pension, despite being in a position to do so. We have similar salaries and she’s never had a career break. She’s always looked at the inheritance she’s due to receive. I, on the other hand, have built up a significant private pension. Will I have to split this with her if we divorce?
Don
Money live reporter Jess Sharp tackles this one…
Hello Don, thanks for getting in touch – and I’m sorry to hear about the situation you’re facing. Hopefully this will help.
The end of any relationship is stressful and upsetting, but going through a divorce can be particularly overwhelming because of the legal process that comes with it.
It’s important to get legal advice before making any major decisions, and the more unified you and your wife can be, the smoother it will be.
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I spoke to Ashley Le-Core, partner at Stowe Family Law, who explained pensions are one of the assets considered to be part of the overall matrimonial pot when you divorce if you’re in England and Wales.
“While a lot of people consider them to be sole assets (ie, not shareable) this isn’t the case,” she said.
“It’s noted, of course, that your wife could have paid into her pension over the years, but the fact she hasn’t is unlikely to be held against her.
“Your situation is looked at with the value of all the assets across you both as they stand today, and attempting to find a suitable settlement for both parties.”
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Depending on the disparity between your pensions, she said it was “quite likely” you would have to share some of yours with your wife, but that wasn’t set in stone.
“Each case has to be looked at on an individual basis,” she said. “You may have other assets that you may be willing to allow your wife to retain as part of the divorce, to either protect your pension from any claim at all, or to reduce how much pension you may have to share.”
I also spoke to Joanna Farrands, partner and head of family law at Moore Barlow, who said courts began from the presumption of a 50/50 split of these assets, but this was adjusted based on each party’s needs, contributions and overall financial circumstances.
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If there are substantial elements that are originally owned by one of you, such as inheritances, and the other assets meet both of your needs, she said, you can make an argument for a “departure based on fairness”, which can mean the court awards a larger share of those assets to the original owner.
“The difficulty will be if she has not received her inheritance yet,” she said.
“In that instance, the court will be unlikely to take it into account as inheritance is non-matrimonial and not certain – for example, the money could be used up in care home fees, or someone could change their will.”
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