Settlement Options

Offsetting, Pension Attachment, Pension Sharing


The parties retain their respective pension rights and any deemed imbalances offset by compensating the other party with other matrimonial assets such as equity in the home, car, bank balances, investments, etc of a similar value.

Pension Attachment

This option was previously known as earmarking. 

An agreed percentage of the pension benefits of the scheme member when in payment is diverted to the ex-spouse.  There are a number of issues with this approach including the ex-spouse has no control over timing, the benefits still remain in the name of the member, the ex-spouse’s share of any periodic pension payments would stop if the ex-spouse remarries or if either party dies etc.  As a result, this is typically the least preferred option.

Pension Sharing

The value of the member’s pension rights is determined at the time of the divorce and shared between the member and the ex-spouse.  A proportion of the members pension rights is deducted (known as the ‘Pension Debit’) and allocated to the ex-spouse (known as the ‘Pension Credit’) so the ex-spouse sets-up a pension in their own right providing a clean break.