Pensions are often amongst the most valuable assets considered on divorce and this is particularly true where one party has served in the Armed Forces. A military pension can represent long term financial security built up over many years of service, often in circumstances involving personal sacrifice and frequent disruption to family life. Understandably, questions about how a military pension is treated on divorce can cause significant concern for both parties.
The way a military pension is dealt with will depend on the type of scheme involved, when the benefits were built up and the wider financial circumstances of the marriage. Careful consideration is needed to ensure a fair and informed outcome.
Is A Military Pension Considered
A military pension is treated in the same way as other pensions for the purposes of divorce and will usually form part of the overall financial assets considered by the court. This applies whether the pension is already in payment or is only due to be received in the future.
Where some or all of the pension was built up during the marriage, it is likely to be regarded as a matrimonial asset. If service began before the marriage, the court may distinguish between the portion accrued before and during the relationship. However, this does not mean that the pre marriage element will automatically be excluded.
Types Of Military Pension
There are different Armed Forces pension schemes, depending on when service began. These include final salary and career average schemes, each with different structures, benefits and retirement ages. Identifying which scheme applies is essential when assessing both value and potential division.
A pension valuation, known as a Cash Equivalent Value, is usually required for divorce purposes. While this provides a standardised figure, it may not always reflect the true long term value of a military pension, particularly where benefits are index linked or include valuable survivor provisions. Additional expert input is sometimes needed to ensure the pension is properly understood.
How Can A Military Pension Be Divided
There are several ways a military pension can be addressed within a divorce settlement. One common option is pension sharing, where a percentage of the pension is transferred into a pension in the other party’s name. This approach creates a clean break and allows both parties to build independent retirement provision.
Another option is offsetting, where one party retains the pension and the other receives a larger share of non-pension assets, such as property or savings. This can work well where there are sufficient assets available but it requires careful calculation to ensure fairness.
In some cases, pension attachment may be considered, where one party receives a share of the pension income when it comes into payment. This option is now less common, as it keeps a financial link between former spouses and offers less certainty.
Special Considerations In Military Cases
Military life often involves frequent relocations, overseas postings and periods of separation. These factors can have a lasting impact on the non-serving spouse’s career and earning capacity, and are relevant when assessing what would be fair on divorce.
Survivor benefits, death in service provisions and the effect of remarriage may also require careful consideration to ensure appropriate protection is in place following divorce.
How We Can Help
Military pensions can be complex and it is important to understand their true value, and how they fit into the wider financial picture. Early specialist advice can help you make informed decisions and avoid outcomes that may seem fair now but prove unbalanced in the long term.
Goodsells Family Law provides clear and practical advice to clients dealing with military pensions on divorce. We work with appropriate experts where needed to ensure pensions are properly understood and fairly addressed.
How To Get In Contact
At Goodsells Family Law Solicitors, we can provide specialist advice. Contact Donna Goodsell on donnagoodsell@goodsellssolicitors.co.uk or call us on 0207 622 2221