New research has highlighted how the gender pensions gap disproportionately affects women when pensions are not discussed while going through divorce proceedings.

Law firm Stowe Family Law found that, in around half of couples, 90 per cent of pension wealth is held by one partner, usually the husband, which can leave women at a financial disadvantage and at risk of poverty in retirement.

Its research showed that not discussing pensions in divorce could cost women an average of up to £77,000 in retirement.

Over two-thirds of female, divorced survey respondents did not get a legal financial settlement and, of those who did, 59 per cent did not get a share of their partner’s pension and 12 per cent were not sure.

The study also found that 46 per cent of women did not have a private pension.

More than half (58 per cent) said they did not have a private pension because they did not earn enough, while 17 per cent did not have one because they had no understanding of them.

A quarter (25 per cent) were unsure whether their spouse had a private pension, while 77 per cent did not know the value of their spouse’s pension.

Nearly three-quarters (70 per cent) did not know the value of their own pension.

“Dealing fairly with pensions on divorce remains an often-overlooked area for separating couples, with those who attempt a DIY divorce most likely to run into problems,” commented Stowe Family Law partner, Matthew Taylor.

“Only 12 per cent of financial orders on divorce contain a pension sharing order, and it remains all-too-common for parties, usually the wife, to ignore claims against their spouse’s pension or forego claims due to a desire to retain the family home.

“While this can be a sensible approach, many fail to understand the true value of the pension share they are giving up, and women are at risk of trading a long-term guaranteed income for short-term stability.

“The average disparity between men and women’s pension assets is 56 per cent, primarily due to higher rates of part-time work for women and the gender pay gap. This leaves women getting divorced facing significant financial disadvantage if they do not bring any pensions into consideration.

“Divorcing parties must ensure they educate themselves on their financial claims following divorce, and take advice – both legal and financial – to ensure they are considering not just their current financial position, but what the future will look for them over the medium and long term. It is high time that pension sharing orders became a central part of these conversations.”

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