A lack of consideration for pensions during divorce proceedings could be putting women’s financial futures at risk and acting as a "key fault line" for the gender pensions gap, research from Legal & General (L&G) has suggested.

The analysis showed that women's financial futures are at risk following divorce, revealing that women see their household income fall by 41 per cent following a divorce, compared to 21 per cent for men.

What's more, L&G warned that, in addition to the immediate changes to income, there is a long-term impact to women’s financial wellbeing, as only 12 per cent of couples consider their pension as part of divorce proceedings.

While men and women tend to agree that the division of their finances at the point of divorce is fair and equitable (53 per cent of men and of 46 per cent of women), the research found that many women may be signing over their rights to a pension as a key financial asset.

Indeed, women were also significantly more likely to waive their rights to a partner’s pension as part of a separation, 30 per cent of women compared to 17 per cent of men.

L&G warned that this can exacerbate the already significant gender pensions gap and potentially could leave divorcing women without the resources to fund their retirement.

Despite this, only 7 per cent of those going through a divorce seek independent financial advice, which L&G highlighted as evidence that the advice gap facing many in the UK creates particular challenges for those going through a breakup.

After the experience, many women suggest they regretted their decision to not seek professional guidance, with 31 per cent saying they’d be more likely to turn to an adviser in future.

Commenting on the findings, L&G head of DC, Rita Butler-Jones, said: “Disentangling finances when a marriage ends can be painful for all concerned. But just as we’ve seen with gender gaps in pay and pensions, there may be particular jeopardy if you’re a woman.

“We know from our research into the gender pensions gap that women’s pension pots are generally half that of men’s at retirement. There are a number of reasons for this – from the gender pay gap to career breaks to taking on caring responsibilities for loved ones, women face a number of structural barriers when it comes to long-term, financial well-being.

“These findings tell us that divorce is a further key fault line in exacerbating the gender pensions gap. We would encourage anyone who is going through a divorce to consider the joint value of pensions as an important financial asset in any equitable split.”

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