When pension sharing was introduced in 1999 as part of the Welfare Reform & Pensions Act, it was heralded as the beginning of a new era in dealing with pensions on divorce. Although pension sharing provides a more flexible option, it arguably remains under-used – perhaps because of the complexity of pension issues.
A study by the Institute of Social and Economic Research shows that marital splits are accompanied by a substantial decline in real income for many wives, whereas the real income of husbands scarcely changes. This suggests that divorce remains a major risk factor for women’s financial health. It also means that solicitors should consider pension sharing as a means of ensuring long-term security for their female clients.
