House or pension? Financial guidance can help divorcing women make this tough decision

One of the most common and emotionally charged questions I hear from my female divorcing clients is, “Should I waive my pension rights in favour of keeping the family home?”

Worryingly, many women don’t realise the potential value of pensions, leading them to undervalue this marital asset or overlook it entirely when considering settlement options.

Figures published by the Women’s Budget Group (12 March 2025) reveal that over a third of divorcing women who have a pension not yet in payment had no idea what their pension pot (let alone that of their ex-spouse’s) was worth.

In contrast, divorcing women often place a high emotional and financial value on the marital home. As such, your clients may prioritise keeping the house over retaining their pension rights.

Keep reading to find out why this choice needs careful thought and learn how a financial expert can use cashflow modelling to help your female clients make an informed decision.

The family home often represents much more than bricks and mortar

Many women prioritise keeping the marital home during a divorce because of their emotional attachments to it.

For your divorcing female clients, their house could be:

• Where their children grew up
• An important source of cherished memories
• A link to their family, friends, and community
• The only place they’ve lived after leaving their parents’ home
• A safe space that provides stability and security for them and their children.

So, they may feel that keeping the family home will ensure continuity for themselves and their dependents.

In contrast, women often worry that asking for a fair share of their ex-spouse or partner’s pension savings could make them seem greedy or result in them being branded a “gold-digger”.

All of which helps to explain why your female clients might favour keeping their property over retaining rights to their ex-spouse’s pension.

Giving up pension wealth could jeopardise your female clients’ long-term financial security

Pensions are often the second most valuable marital asset after the family home. However, according to PensionsAge (6 January 2025), only 13% of divorcing couples consider pensions when dividing assets. What’s more, research by Legal & General (2 April 2025) has found that women are more likely to waive their pension rights than men (28% compared to 17%).

Yet, women are disproportionately affected by not sharing pensions on divorce because they have less in their pension pots on average than men – often due to career breaks for childcare. Indeed, FTAdviser (8 May 2024) has reported that women are losing between £2 billion and £4 billion every year by neglecting pension wealth in their settlements.

Moreover, Legal & General (7 February 2024) has found that women see their household income drop twice as much as men in the year after divorce. As such, your female clients may find it harder to recoup any loss of pension wealth, potentially leaving them with a shortfall in retirement.

So, if your female clients give up their pension rights in return for the marital home, they could become asset-rich but income-poor. That’s why it’s crucial to carefully weigh up all options with the help of a financial expert.

Cashflow modelling could help your clients make informed decisions about their future

I use cashflow modelling as part of my unique Visualise Your Future process. This advanced software allows me to show your clients the real implications of different settlement options by projecting their income, spending, and assets over time.

In our recent webinar case study, we demonstrated how this approach can provide female divorcing clients with the financial clarity they need to make informed (rather than emotional) decisions.

The client, Amelia, was adamant that she wanted to remain in the family home following her divorce, even though this would have left her with a significant financial shortfall in both the immediate future and during retirement.

The case study shows how we used cashflow modelling to help Amelia understand:

• The pros and cons of keeping the house v taking a share of pensions
• How her lifestyle and choices could change depending on the settlement
• The bigger picture – which allowed her to make a calmer, better-informed decision.

Working with a financial expert in this way gave Amelia clarity, emotional reassurance, and confidence in her choices.

This approach also makes life easier for you as a solicitor, because your clients will be more focused, realistic, and settled, which helps move things forward constructively.

Read more: How cashflow modelling could help your divorcing clients plan for the future True Divorce Consultancy Ltd. Offers tailored financial guidance and scenario planning throughout the divorce process.

Professional partnerships can ensure your clients receive joined-up support and better outcomes

Amelia’s case study highlights the value of working as a divorce team that includes legal, financial, and emotional experts.

This approach ensures that clients understand their finances and have realistic expectations when they enter legal negotiations. This is a win-win for you and your client, as you’ll both benefit from:

• A client who feels empowered to make key decisions
• Less time spent seeking information or clarifying financial matters
• Fewer delays, less back and forth, and a more efficient resolution process.

Throughout my career, I have built an extensive network of trusted professional connections. By working together, we can help your female divorcing clients make difficult choices – such as whether to keep the family home or marital pension wealth – with clarity and confidence.

Get in touch

If you’d like to know more about how we can work together to help your female divorcing clients reach an informed decision about their settlements, I’d love to hear from you.

Please contact me at lottie@truefinancialdesign.co.uk or call 0330 088 9138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate cashflow planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

True Divorce Consultancy Ltd has no association with 2plan wealth management Ltd.