Divorce can drain your pension pot

more is at stake, particularly for middle-aged couples when we try to make a fair division after a marriage breakdown.

Although family property tends to be thought of as the biggest asset, figures show that private pension wealth is the largest component of aggregate total wealth.

Values have surged thanks to stock market increases and changes in legislation have opened the door to greater flexibility in accessing pension pots, making them increasingly important in divorce negotiations.

We see more partners seeking a share of pension arrangements on divorce and expecting an equal share of all assets.

However, a recent Court of Appeal ruling in Hart v Hart saw a wife awarded £3.5m out of total resources of just under £9.4m in a decision which some have interpreted as a shift in attitude.

The judgement gave greater weight to the pre-marriage wealth of the husband, despite a 23-year marriage, with the wife’s settlement based on a calculation of needs, rather than equal sharing of assets.

This case was a complicated one and it is unusual to see premarital wealth being given such consideration after a relatively long marriage, during which finances may have mingled. But together with the increasingly complex finances of those embarking on second or subsequent marriages, it is an outcome that may encourage more new couples to seek pre-nuptial agreements or sometimes post-nuptial.

While such agreements are not automatically legally binding in England and Wales, they are likely to be upheld if done properly.

What is important is open communication and understanding of financial affairs.

Often, one partner may take the lead on finances or some couples may just avoid it, as they think it is a tricky topic.

But understanding what you have today, in a positive, settled relationship, may mean you can better cope if the worst happens and things become difficult in future. If you are proud of what your business has achieved why not tell us about your success story and you could be a winner of our prestigious award.