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Pension Offsetting in Divorce

Pension offsetting in divorce allows one party to retain the total value of their pension, in exchange for providing their former partner with alternative matrimonial assets of the same value.

So instead of actually giving up a portion of their pension, they can instead forego the relevant value of their share of the marital home or joint savings etc.

Pensions often make up a substantial portion of the matrimonial pot – the collection of assets that are divided up in the divorce settlement. In fact, pensions are often the second most valuable asset after the marital home.