More divorcing couples are turning to the courts to resolve financial disputes, amid growing concern over long-term financial security and the rising cost of living.
Recent Ministry of Justice figures show applications for financial remedy orders reached their highest level in 15 years during 2025, despite overall divorce numbers falling. The figures show there were 49,067 applications for a financial remedy in the family courts in 2025, the highest since 2010 when 51,681 applications were made.
Family law specialists say the trend reflects increasing anxiety about future finances, with pensions becoming one of the most significant - and often most misunderstood - assets in many settlements.
“People are understandably far more focused on financial security than they may have been,” said Kennedy Langley, a Senior Associate within our Family Law team. “And for many couples, pensions may represent higher long-term value and have more at stake than the family home. But too often we find spouses – especially in cases where parties are a way away from retirement age - are unaware of the importance of pensions within a divorce settlement, and there’s frequent confusion about what might happen without formal agreement.”
Valuation and implementation of any agreement reached in relation to pension pots can be technical, and specialist advice is often needed.
Pensions will usually be treated as ‘matrimonial assets’, which means they can be valued and shared as part of the overall financial settlement on divorce.
The main options are a pension sharing order or pension attachment (earmarking).
A pension sharing order provides a clean break: a stated percentage of one spouse’s pension is carved out and transferred into the other spouse’s own pension arrangement, to be managed independently.
“That separation is important,” Kennedy explained. “Once a pension sharing order has been implemented, the financial ties have been cut, and the ex-spouse knows they can rely on the pension pot they received as part of the divorce settlement.”
By contrast, older arrangements, known as pension attachment or earmarking orders, can work differently. Under these orders, a portion of the pension fund is not transferred. Instead, a portion of the pension benefits is paid to the other spouse only when they come into payment. This leaves an ongoing financial connection between the parties and exposes the recipient to the member’s choices about retirement timing and, in some cases, the impact of death benefits. Importantly, the move to no‑fault divorce does not end financial claims.
Legal experts say the rise in financial remedy applications also highlights the risks of informal arrangements or attempts to resolve complex financial matters without proper advice.
While no-fault divorce has simplified the process of ending a marriage, it does not automatically put an end to financial claims between spouses. Without a formal financial order approved by the court, financial claims between the parties remain ‘live’, even after the divorce itself has been finalised.
“There can be a temptation to deal with matters informally to save time or legal costs,” says Kennedy. “But where pensions and long-term financial security are concerned, it’s vital to get independent advice and have matters agreed formally and set out in a financial consent order to be approved by the Court.
“Understanding exactly what has, and has not, been agreed will help avoid confusion and disputes later on.”
With economic pressures continuing to shape how couples approach separation, ensuring pension arrangements are properly understood and documented is likely to become an increasingly important part of the divorce process. Contact Kennedy Langley at kennedy.langley@mfgsolicitors.com or call 01562 820181 to properly document your pension arrangements in case of divorce.