State Pension and Divorce: Protecting Your Rights

Key Facts

How Divorce Affects State Pension

New State Pension (From 6 April 2016)

If you reached State Pension age on or after 6 April 2016:

• Your State Pension is based entirely on YOUR NI record
• You CANNOT claim based on ex-spouse's contributions
• Getting divorced doesn't automatically change your entitlement
• However: You CAN share State Pension through a court order

Old State Pension (Before 6 April 2016)

Different rules applied. Under the old system, divorced women could sometimes claim based on ex-husband's record if:

• Marriage lasted at least 12 months
• Both partners reached State Pension age before 6 April 2016
• Not remarried before State Pension age

This guide focuses on the new State Pension (post-2016).

Pension Sharing on Divorce

What Is Pension Sharing?

Pension sharing is when the court orders that State Pension built up during the marriage is divided between you and your ex-spouse.

How it works:

• The court values both partners' State Pensions
• Court orders a percentage to be transferred (e.g., "Transfer 30% of Spouse A's State Pension to Spouse B")
• DWP implements the order
• The shared amount becomes part of recipient's own State Pension
• Once shared, it cannot be taken back (even if you remarry)

When Should You Request Pension Sharing?

Consider pension sharing if:

• One partner has significantly more qualifying years than the other
• One partner took career breaks for childcare/caring
• Marriage was long (10+ years)
• One partner sacrificed career for family

How to Get a Pension Sharing Order

1. During divorce proceedings: Request pension valuations for both partners
2. Negotiate: Discuss pension sharing with your solicitor as part of financial settlement
3. Court order: Judge issues Pension Sharing Order
4. Implementation: Send order to DWP who update State Pension records

Real-World Example: Pension Sharing

Tom and Lisa, divorcing after 25 years:

Before divorce:

• Tom: 35 qualifying years (worked throughout marriage)
• Lisa: 18 qualifying years (took 10 years off for children, worked part-time)

State Pension entitlements:

• Tom: £230.25/week (£11,973/year) - full pension
• Lisa: £118.41/week (£6,157/year) - 51% of full pension

Pension Sharing Order:

• Court orders 20% of Tom's State Pension transferred to Lisa
• This represents years Tom built up while Lisa cared for children

After pension sharing:

• Tom: £184.20/week (80% of £230.25)
• Lisa: £164.46/week (original £118.41 + 20% of Tom's £230.25)

Result: More balanced outcome reflecting Lisa's contribution to family.

National Insurance Credits and Divorce

Child Benefit Credits

During marriage, one parent gets NI credits from Child Benefit. On divorce:

• Credits cannot be retrospectively transferred
• Going forward, the parent claiming Child Benefit gets the credits
• Consider who should claim if children continue living with one parent

Specified Adult Childcare Credit

If the non-claiming parent cared for children:

• They may be able to apply for Specified Adult Childcare Credit for past years
• Requires claiming parent to sign form CA9176
• Can only backdate to start of current tax year

Home Responsibilities Protection (HRP)

For divorces involving periods before April 2010:

• HRP protected basic State Pension for people caring for children
• On divorce, you can apply to have HRP years credited to you
• Relevant for old State Pension only

Protecting Your State Pension During Divorce

Step 1: Get State Pension Valuations

Both partners should:

1. Check State Pension forecast: gov.uk/check-state-pension
2. Request formal valuation for divorce (form BR20 from DWP)
3. Provide to your solicitor

Step 2: Consider All Pension Assets

Don't forget about:

• Workplace pensions
• Private pensions
• State Pension

State Pension may seem small compared to large workplace pensions, but it's valuable because it:

• Lasts for life
• Increases with inflation
• Is guaranteed by government

Step 3: Include in Financial Settlement

Options for dealing with pensions in divorce:

1. Pension Sharing: Split pensions (including State Pension)
2. Pension Offsetting: One keeps pension, other gets more of house/assets
3. No adjustment: Each keeps own pensions (if roughly equal)

Step 4: Get Legal Advice

State Pension and divorce is complex. You should:

• Consult a family lawyer experienced in pension sharing
• Consider a pension valuation specialist
• Ensure State Pension is included in negotiations

Common Divorce Scenarios

Scenario 1: One Partner Worked, One Stayed Home

Situation:

• Partner A: Worked full-time, 35 qualifying years
• Partner B: Stayed home with children, 10 qualifying years
• Married 20 years

State Pension gap:

• Partner A: £11,973/year
• Partner B: £3,421/year
• Difference: £8,552/year

Solution:

• Pension Sharing Order transferring portion of A's State Pension to B
• Reflects B's contribution to family by enabling A to work

Scenario 2: Both Worked, Significant Gap

Situation:

• Partner A: 32 qualifying years
• Partner B: 25 qualifying years
• Both worked, but B earned less / worked part-time

State Pension gap:

• Partner A: £10,947/year (91% of full)
• Partner B: £8,552/year (71% of full)
• Difference: £2,395/year

Solution:

• Smaller Pension Sharing Order OR
• Offset with other assets (B gets more of house)

Scenario 3: Both Have Full Entitlement

Situation:

• Both partners: 35+ qualifying years
• Both will get full State Pension

Solution:

• No State Pension sharing needed
• Focus on workplace pensions if there's disparity there

Scenario 4: Late-Life Divorce

Situation:

• Divorcing at age 60, both reached or near State Pension age
• One partner has significantly more State Pension

Considerations:

• Pension sharing is especially important (little time to rebuild)
• May need to claim Pension Credit if State Pension ends up low
• Consider immediate financial impact

After Divorce

Check Your Updated Forecast

After Pension Sharing Order is implemented:

• Check your State Pension forecast to see updated entitlement
• May take several months for DWP to process
• Shared amount becomes permanent part of YOUR pension

Consider Filling Gaps

If divorce reveals you have gaps in your NI record:

• Check which gaps you can fill
• Consider voluntary NI contributions
• Use our Voluntary NI Calculator

Update Your Plans

• Recalculate retirement income based on new State Pension entitlement
• Consider whether you need to work longer
• Review workplace pension beneficiaries

Remarriage and State Pension

If You Remarry

Under new State Pension:

• Your State Pension doesn't change when you remarry
• You keep any State Pension you received through pension sharing
• You still cannot claim based on new spouse's record

Inherited State Pension

If your ex-spouse dies after divorce:

• You generally CANNOT inherit State Pension from ex-spouse
• Exception: Some protected payments from old system if not remarried before State Pension age

Cohabiting Couples (Not Married)

If you separate from a long-term partner without being married/civil partnered:

• You CANNOT share State Pension
• Each partner keeps their own NI record and entitlement
• No pension rights on separation

Planning ahead:

• Cohabiting couples should each check their own NI records
• Ensure both partners are building qualifying years
• Consider who claims Child Benefit (for NI credits)

Common Mistakes to Avoid

❌ Not Mentioning State Pension in Divorce

Many people focus only on workplace pensions and forget State Pension. Always include it.

❌ Assuming You Can Claim Later

Pension sharing must be included in the original financial settlement. You can't add it later.

❌ Not Getting Valuations

Get official State Pension valuations for both partners - don't guess or estimate.

❌ Forgetting About NI Credits

If you cared for children during marriage, ensure you're getting the NI credits (or can apply for them).

❌ Not Updating Forecasts After Divorce

Check your State Pension forecast after divorce finalizes to see your new entitlement.

Important Contacts

State Pension Valuations

Future Pension Centre: 0800 731 0175

Request form BR20 for State Pension valuation for divorce.

After Pension Sharing Order

Send the court order to:

DWP
Mail Handling Site A
Wolverhampton
WV98 1LW

Legal Advice

• Family law solicitor experienced in pension sharing
• Pension valuation specialist
• Financial advisor for retirement planning post-divorce