A recent report from Sky News has highlighted a huge issue in family law: the financial fallout of divorce, and disproportionate settlements that impacts women.
According to research*, a woman’s household incomes fall by around 50% post-divorce, compared to a 30% drop for men. The implications of this disparity are not just short-term -they can last a lifetime, particularly when it comes to pensions later in life.
At Coles Miller Solicitors, our Family Law team unfortunately witnesses these patterns far too often. Divorce is emotionally exhausting - but it can also be financially devastating, especially when important long-term assets such as pensions are overlooked or undervalued in the settlement process.
Pensions in divorce settlements
Pensions are frequently the largest asset after the family home, yet thousands of women waive their rights to them during divorce proceedings - either through lack of knowledge, poor advice, or pressure to reach a quick settlement. Many believe that keeping the house is enough, unaware of how this may leave them financially vulnerable in later life.
The Sky News article also highlights how inadequate pension provision is contributing to growing economic hardship among divorced women in retirement. In our experience, this issue stems in part from a lack of clear, accessible guidance on pension sharing orders, offsetting, and the long-term implications of settlement decisions.
Understanding the divorce process
Knowing the legal steps to divorce is crucial to understanding your rights and obligations. The process in England and Wales typically follows these stages:
Either spouse (or both jointly) applies for divorce online or via paper under the ‘no fault’ divorce system.
The respondent would under usual circumstances confirm receipt and agree to the No Fault divorce.
A mandatory 20-week reflection period follows before the Conditional Order (previously known as Decree Nisi) can be applied for.
This confirms that the court sees no reason why the divorce cannot proceed.
During this time, financial negotiations should take place - including full disclosure of assets such as pensions, savings, property, and investments.
The divorce is legally finalised - however, without a financial order in place, your financial claims may remain open.
What do we need to change? Legal reform and better advice
The current divorce system in England and Wales still falls short in protecting financially weaker spouses. Reform is urgently needed to ensure that divorce settlements account more fully for future needs, not just immediate circumstances.
What is needed:
What do if you’re considering divorce.
Get early legal advice
Understanding your rights from the outset is crucial. A solicitor specialising in family law will help you identify all matrimonial assets, including pensions.
Don’t rush to settle
Agreeing to terms too quickly to ‘get it over with’ could leave you financially exposed and worse off. Take time to understand the long-term impact of any agreement.
Consider expert financial advice
In complex cases, working with a financial planner or pension specialist can ensure you have a clear picture of your future needs and entitlements.
Think beyond the family home
While keeping the home may seem like the safest option, it might not always be the most sustainable one. Liquid assets and pension rights can offer more financial security in the long term.
Coles Miller is here to help
At Coles Miller Solicitors, our experienced Family Law team works with individuals across Dorset and beyond, to ensure divorce settlements are fair, balanced, and future-proof. We advocate strongly for equal financial outcomes and provide clear, empathetic advice throughout what can be a difficult journey.
Lindsey Arnold (Partner, Poole head office) is a highly experienced family lawyer who specialises in matters including divorce, dissolution of civil partnerships, separation, financial remedy proceedings, complex family law cases involving children, cohabitation agreements, adoption, pre/post-nuptial agreements, jurisdictional issues and family injunctions.
*Legal and General: https://bit.ly/3FpHeA2