Pension Sharing Mediation Frome

Dividing Pensions During Divorce? Mediation Can Help You Find a Way Forward

When a marriage ends, it’s easy to focus on the things you can see.

The house. Savings. Cars. Debts. Monthly bills.

But one of the most valuable assets you have may be sitting quietly in the background:

Your pensions.

For many couples, deciding what happens to pensions during divorce can be one of the most complicated parts of reaching a financial settlement.

One person may have built up a substantial workplace or private pension while the other took time away from work to raise children, worked fewer hours or contributed to family life in different ways.

You may both have pensions. You may not even know what they’re worth yet.

At EH Mediation, pension sharing mediation gives you a structured, neutral environment in which to discuss pensions alongside the rest of your finances and explore possible ways of reaching an agreement.

Rather than immediately asking a court to decide your financial future, mediation helps you work through the issues together.

What Is Pension Sharing Mediation?

Pension sharing mediation is a form of financial mediation during divorce or dissolution that helps separating couples discuss how pensions should be considered within their wider financial settlement.

Your mediator doesn’t decide who should receive what.

They remain impartial and help you both:

identify the pensions that need to be considered
exchange relevant financial information
understand the issues that need resolving
discuss your respective needs and priorities
consider pensions alongside property, savings, investments and debts
explore different possible settlement options
work towards proposals you can both accept

EH Mediation already provides financial mediation covering property, savings, debts, investments, pensions and longer-term financial planning.

You stay in control of the decisions.

Why Pensions Shouldn't Be Forgotten During Divorce

A pension can be easy to overlook because, unlike money sitting in a savings account, you may not be able to access it for many years.

That doesn’t make it unimportant.

MoneyHelper warns that pensions may be among a couple’s biggest assets and can sometimes be worth more than the home.

This can become particularly important where one person has:

a large workplace pension
a defined benefit or final salary pension
several pensions from previous employers
significantly greater retirement savings
spent considerably longer in employment
remained in full-time work while the other cared for children

Simply ignoring the pensions and dividing everything else may therefore create a very different financial position for each person later in life.

How Do You Find Out What Your Pensions Are Worth?

Before meaningful discussions can take place, you generally need a clear picture of your financial circumstances.

For pensions, this may include obtaining a Cash Equivalent Transfer Value (CETV) from pension providers.

MoneyHelper recommends requesting a CETV for divorce or dissolution purposes and notes that more complicated pension arrangements may benefit from assessment by a Pension on Divorce Expert (PODE).

During financial mediation, you may therefore need to gather information relating to:

✓ Workplace pensions
✓ Private/personal pensions
✓ Defined contribution pensions
✓ Defined benefit/final salary pensions
✓ Pensions already in payment
✓ Relevant State Pension information
✓ Other savings, investments and assets

Your mediator can help identify what information needs to be available for productive discussions, but a mediator does not replace specialist legal, pension or regulated financial advice.

What Are the Options for Dealing With Pensions in Divorce?

There isn’t necessarily one solution that works for every separating couple.

Broadly, pensions can be dealt with through pension sharing, pension attachment or pension offsetting, and in some circumstances a combination may be considered.

Pension Sharing

A Pension Sharing Order divides an agreed percentage of pension benefits so that the receiving person obtains pension rights in their own name.

This can provide greater financial independence after divorce because the pension credit becomes separate from the former spouse’s pension arrangements.

HMRC confirms that pension sharing allows one party to acquire a share of the value of the other’s pension rights as part of a divorce or civil-partnership dissolution settlement.

Pension Offsetting

Pension offsetting means the pensions remain with their existing owners, but their value is taken into account when dividing other assets.

For example, one person might retain more pension while the other receives a greater proportion of another asset.

This can sound straightforward, but comparing a pension that may not be accessible for years with property or cash available today can be complicated.

Pension Attachment

A Pension Attachment Order can provide for part of a person’s future pension and decide what will be paid to their former spouse or civil partner.

Unlike pension sharing, the pension isn’t separated in the same way, and payments can remain dependent upon what happens with the original pension.

Which option may be appropriate?

That’s precisely why pensions shouldn’t be considered in isolation.

Mediation can help you discuss the whole financial picture, while independent legal, financial and pension specialists can provide the professional advice you need when appropriate.

How Does Pension Sharing Mediation Work?

1. Start With a MIAM

The process will normally begin with a Mediation Information and Assessment Meeting (MIAM).

This is an individual meeting where you can explain your circumstances privately and learn more about mediation.

The mediator will also consider whether mediation is suitable for your situation.

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2. Financial Disclosure

Before trying to reach proposals, both parties need sufficient information about the finances being discussed.

This could include:

pensions
property
mortgages
savings
investments
debts
income
other relevant assets and liabilities

Pension values can then be considered as part of the wider financial picture.

3. Identify the Issues

Perhaps you agree about the house but not the pensions.

Perhaps one of you wants to keep the family home.

There may be a substantial difference between your retirement provisions.

The mediator helps identify where you agree, where you don’t and what needs to be resolved.

4. Explore Possible Solutions

You can then explore different possibilities.

Instead of arguing from fixed positions, mediation encourages you to look at the practical implications of different options — both now and for your longer-term financial futures.

5. Obtain Specialist Advice Where Needed

Some pensions are relatively straightforward.

Others are not.

Where appropriate, you may need independent legal advice, regulated financial advice or a report from a pension specialist/Pension on Divorce Expert.

The mediator can work with the information provided by those specialists without becoming your financial adviser.

6. Work Towards an Agreement

If you reach proposals you both feel able to accept, the mediator can record the outcome.

You can then take appropriate legal advice about turning your financial proposals into a legally binding settlement.

Does a Mediated Pension Agreement Automatically Become Legally Binding?

No. This is an important distinction.

Discussions and proposals reached through mediation do not, by themselves, create a Pension Sharing Order.

If you’re divorcing in England or Wales and reach a financial agreement, you will generally need the appropriate court-approved financial order/consent order to make the settlement legally binding.

A Pension Sharing Order is ultimately a legal order — mediation helps you try to reach agreement about what you want the settlement to look like.

We therefore encourage clients to obtain independent legal advice before finalising financial arrangements.

Pension Sharing Mediation vs Going to Court

If you can’t agree about finances, you can ask the Family Court to make decisions about the division of assets, including pensions.

But that means handing the final decision to a judge.

GOV.UK states that mediation can help separating couples agree how to divide pensions and other assets and notes that reaching agreement can be faster and more cost-effective than asking a court to decide.

Mediation instead gives you an opportunity to:

✓ Keep discussions focused and structured

✓ Consider both people’s priorities

✓ Explore several possible solutions

✓ Discuss pensions alongside your other assets

✓ Seek specialist advice where required

✓ Retain greater control over the outcome

✓ Potentially reduce the time and cost associated with contested proceedings

Most importantly, the mediator doesn’t impose a settlement on either of you.

“But It’s My Pension — Why Should My Ex Get Any of It?”

This is one of the questions people understandably ask.

A pension may be held in one person’s name, but pensions can still be relevant when finances are considered in a divorce.

Relationships don’t always involve two people earning the same amount and contributing equally to pensions.

One person may have:

taken maternity or parental leave
worked part-time
stayed home with children
supported the other’s career
earned less while taking on more family responsibilities
built up substantially less retirement provision

That’s why it’s important to consider the overall financial circumstances rather than whose name appears on a pension statement.

MoneyHelper similarly explains that someone who hasn’t directly contributed to their former partner’s pension may have contributed to family life in other ways. In contrast, their partner continued working and building pension benefits.

“I Don’t Want My Pension Touched”

Being worried about losing part of a pension you’ve spent decades building is understandable.

Mediation doesn’t begin by assuming your pension must be divided in a particular way.

Instead, it allows you to explore the bigger financial picture.

Could another arrangement work?
What other assets exist?
What does each person need now?
What might each person need in retirement?
Would pension offsetting be appropriate?
Would a Pension Sharing Order need to be considered?

These are discussions you can have with the support of your mediator and, where necessary, specialist advisers.

Why Choose EH Mediation for Pension Sharing Mediation?

Financial conversations during divorce can quickly become emotional.

At EH Mediation, our role isn’t to decide who is right or wrong.

We’re here to help you have the conversations that need to happen.

Our financial mediation service can help couples discuss pensions alongside property, savings, debts, investments and future financial arrangements.

We provide a neutral environment where both people have an opportunity to be heard and where discussions can remain focused on finding workable solutions.

You don’t need to have everything worked out before contacting us.

That’s what the process is for.

Pension Sharing Mediation FAQs

Can pensions be discussed in family mediation?

Yes. Financial mediation can include pensions alongside property, savings, investments, debts and other financial issues arising from separation or divorce. GOV.UK specifically lists pensions among the assets a mediator can help separating couples discuss.

Can a mediator decide how much of my pension my ex should receive?

No. A mediator is impartial and doesn’t impose a financial settlement. Their role is to help you exchange information, identify disputes, explore options and try to reach your own proposals.

Do pensions always have to be split 50/50 in divorce?

No. Pensions do not automatically have to be divided equally. The appropriate financial settlement depends upon individual circumstances, which is why independent legal and, where appropriate, specialist pension advice can be important.

What is a Pension Sharing Order?

A Pension Sharing Order allows a percentage of pension rights to be transferred from one party to provide pension benefits for the other as part of the financial settlement following divorce or dissolution.

Can we agree pension sharing through mediation?

You can use mediation to work towards an agreement about how pensions should be treated. However, the mediation agreement itself does not create the Pension Sharing Order. In England and Wales, the appropriate court process is required to make the financial settlement legally binding.

What is a CETV?

CETV stands for Cash Equivalent Transfer Value. It provides a value for pension benefits and is commonly requested from pension schemes when pensions need to be considered during divorce or dissolution.

What if my ex refuses to disclose their pension?

Financial mediation relies upon appropriate financial disclosure. If necessary information isn’t provided, it may not be possible to progress towards an informed financial agreement through mediation. You can discuss the appropriate next steps with your mediator and solicitor.

Can I keep my pension and give my ex more of the house instead?

Potentially. This is known as pension offsetting. However, comparing pensions with immediately available assets such as property isn’t always straightforward, so specialist advice may be important before agreeing to an offset.

What if one of us has a final salary pension?

Defined benefit or final salary pensions can be more complicated to assess than simply looking at the headline CETV. Depending on the circumstances, specialist pension advice or a Pension on Divorce Expert report may be appropriate.

Do we need a pension expert as well as a mediator?

Not in every case, but specialist advice can be valuable where pensions are substantial or complicated. A Pension on Divorce Expert can provide analysis that can then inform discussions between you, your lawyers and your mediator.

Can mediation deal with pensions and the family home at the same time?

Yes. In fact, considering them together can be extremely important. A pension shouldn’t necessarily be viewed separately from the house, savings, investments, debts, income and each person’s future needs.

Can we use mediation if we’re already divorcing?

Yes. Financial mediation can take place while your divorce is progressing. You don’t have to wait until every other part of the divorce is complete before beginning discussions about finances.

What happens if we agree in mediation?

Your mediator can record the proposals reached. You can then obtain independent legal advice and take the appropriate steps to have your financial agreement formalised. In England and Wales, a court-approved order is generally needed for the financial settlement to become legally binding.

What if we can’t agree about the pension?

You don’t have to accept a proposal in mediation. If agreement ultimately cannot be reached, legal advice can help you understand your options, including asking the Family Court to determine the financial arrangements.

Is pension mediation cheaper than going to court?

Costs depend on the complexity of the case and the number of sessions required. However, GOV.UK notes that mediation can be quicker and cheaper than asking the court to determine how finances should be divided.

Can mediation help if we have several pensions?

Yes. Multiple pensions can be included in financial disclosure and considered alongside your other assets. More complicated pension arrangements may require specialist pension advice before you can make informed decisions.

Do I need a solicitor during pension mediation?

You don’t normally have your solicitor sitting in standard mediation sessions, but independent legal advice can be extremely valuable when dealing with pensions and before finalising a financial settlement.

Your Pension Could Affect Decades of Your Financial Future

When you’re dealing with the immediate reality of divorce, retirement can feel a long way away.

But decisions made today could affect both of your financial positions for many years to come.

Don’t leave pensions as an afterthought.

With Pension Sharing Mediation from EH Mediation, you can bring the financial picture together, understand what needs to be resolved and have structured discussions about how you move forward.

Ready to talk about your finances?

Speak to EH Mediation today and take the first step towards resolving your pension and financial arrangements.

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