Teacher pension delays: a hidden challenge in divorce cases

When dividing finances during divorce, separation or civil partnership dissolution, pensions are factored in alongside other finances such as savings and property.

Now, delays in valuing teachers’ pensions are putting pressure on separating couples and divorce lawyers alike.

Pension valuations in divorce settlements

An accurate pension valuation, whether a teacher pension or any other public or private sector pension, is crucial in divorce settlements. When valuing a pension, your lawyer (and the court) will look at its Cash Equivalent Transfer Value (CETV); this is the cash value it would have if it were to be transferred out of a pension. Without this, it is nearly impossible to reach a financial settlement.

Having an accurate valuation helps both parties make informed decisions about settlement offers and negotiations and can prevent disputes.

Delays in valuing teacher pensions

In January, the BBC reported that teachers were unable to progress their divorces because of long delays in working out the value of their pensions. Since then, it has been reported that teachers have launched group legal action against the Government, stating that delays in valuing teachers’ pensions had led to “intolerable strain”, with teachers “trapped in failed marriages”.

So why the delays? In 2023, a new system was introduced to calculate pension valuations, including a four-month embargo on CETVs, following an age discrimination case against the Government. The subsequent backlog still hasn’t been completely cleared.

The Department for Education recently stated that “good progress has been made” on reducing the backlog of CETVs, so we hope to see cases progressing in the coming months.

The impact of valuation delays on divorce settlements

The main impact of teachers’ pension valuation delays is on the couples waiting to formally and legally end their marriage and move on. Dividing finances is often the most complex part of divorce proceedings, so any additional delay or setback only makes things more stressful and drawn out. It also means that parties are left in limbo with legal costs piling up, and unable to move away from the marital home and make a fresh start.

This delay has not only put a strain on teachers but divorce and separation solicitors, too. Lawyers are unable to progress divorce proceedings, as it makes it almost impossible to reach a financial settlement without this.

How to avoid delays in pension valuations

It is hoped that the recent legal action has helped move things along, but in the meantime, there are some things separating couples can do to avoid delays in valuing pensions. These include:

• Gathering as much information as possible in the early stages of the divorce process. This can include obtaining paperwork and understanding the benefits of your teachers’ pension scheme. Having all the details to hand can avoid questions later down the line that might pause progress on the CETV process.
• Instructing an expert. Your divorce solicitor can work with a pensions expert or financial advisor who specialises in pension schemes to expedite the valuation process. These experts can help provide accurate assessments, giving you a better chance of avoiding delays.
• Keeping things amicable, if you can. Working together and collaboratively can make a huge difference when facing delays. Emotions and stress can quickly build when ex-partners face a frustrating delay in divorce proceedings, so having a discussion early on about what your ideal (and realistic) outcome might look like can help you focus on the end goal.

Contact our divorce finance solicitors

For common-sense advice on dividing finances as part of a divorce, separation or dissolution, get in touch. Our divorce finance solicitors provide support and advice on what is a realistic outcome and aim to resolve financial separation through negotiation, where possible.

Call us on 0117 325 2929 or fill out our enquiry form, and we will be in touch.