Divorcees increasingly set sights on each other's retirement savings

 
Oliver Gill
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UK Faces Pension Crisis
Courts can issue a Pension Sharing Order in the event of a divorce (Source: Getty)

Rising numbers of divorcees are targeting each other's retirement savings as pension pots become a key battleground for those splitting up.

There has been a 43 per cent increase in divorcing couples splitting pensions. The number of Pension Sharing Orders rose to 11,503 in 2015/16, according to law firm Collyer Bristow.

The rise is despite the number of divorces in the UK falling by three per cent.

Pension pots have increased in value over recent years as a combination of rising share and property prices has been coupled with greater flexibility in what can be put into a retirement wrapper.

Read more: Here's what could happen to your savings if you get divorced

“With the average transfer value of final salary scheme being over £210,000 there is a lot of stake, especially amongst higher earners," said Collyer Bristow partner Toby Yerburgh.

The bigger the value of these pension pots the more potential for arguments and misunderstandings there are.

Lawyers also said splitting a pension pot can incur substantial administrative costs and create reinvestment risks that many investors would prefer to avoid where they can.

Read more: Till debt do us part: Divorced retirees get lower income and higher debts

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