The 'divorce gap' – when women see their household income cut after a divorce – could leave them financially worse off in retirement, according to research from Legal and General (L&G).

The research found that women saw their incomes cut in half in the year following divorce. In comparison, men's incomes fell by just 30 per cent over the same period.

This highlighted the financial vulnerability that many women faced after a marital breakdown, as well as the longer-term impact on retirement.

One in four women (24 per cent) struggled financially after their split, compared to just 16 per cent of men.

Post-divorce, women were significantly more concerned about the financial implications of retiring alone (13 per cent vs. 8 per cent of men).

Divorce settlements also frequently failed to account for the value of people's pensions, according to L&G, despite this being a significant financial asset.

This disproportionately impacted women, who typically retired with a much smaller pension pot due to the gender pay gap, but also the increased likelihood that they would have taken career breaks or worked part-time to support their families.

Indeed, only 13 per cent of divorcing couples considered pensions when dividing assets, and women were far more likely to waive their rights to their partner's pension (28 per cent of women vs. 17 per cent of men).

These findings come a decade after the introduction of Pension Freedoms, which allowed workplace pension savers aged 55 and over the flexibility to access their pension as they wished.

L&G managing director for retail retirement, Lorna Shah, said women were still "far more likely" to take on the majority of childcare and broader caring responsibilities, both during and after marriage.

"After separating, they not only have to manage the higher costs of living on a single income but also deal with the impact this may have had on their retirement savings," she continued.

"When dividing finances, it's important to look at everything, including pensions, which are often overlooked but can be a major asset and, if possible, to take proper financial advice.

"This is especially important for women, who may have taken career breaks or worked part-time to support their partner's career, leaving them with smaller pension savings of their own," added Shah.

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