Hundreds of teachers have faced life-altering delays in divorce proceedings due to long wait times for pension valuations. With legal action now underway, financial advisers have a key role to play in supporting affected clients through this complex and emotionally charged process, as Alistair Myles, Founding Partner at family law firm Ribet Myles, explains in the following analysis:
A legal stand against delays: the NASUWT takes action
In March, the teachers’ union NASUWT announced it would be taking legal action against the organisation Teachers’ Pensions for the delay in pension valuations, which has been leaving hundreds of teachers unable to get divorced. Some teachers have been waiting over a year to receive the Cash Equivalent Value (CEV) of their pension, which is required to move forward with the financial remedy proceedings of a divorce. In October 2024, 3,062 people were waiting for valuations. This has significantly reduced to 620 people as of March 2025, but reports suggest many remain on the waiting list, and have been waiting a long time.
Why pension valuations matter in divorce settlements
To finalise a divorce, lawyers will always advise couples to agree on a financial settlement, to ensure both parties’ needs are met following a separation. In order to do so, they will need to have an accurate picture of any assets, liabilities and income they hold individually and share. As financial advisers will know, other assets such as property and bank accounts are straightforward to access and understand their value, however, with pensions, you can only get a CEV from the pension provider themselves, and cannot access it any other way.
Pensions can be significant assets, and like others working in the public sector, teachers’ pensions tend to be valuable.
Understanding the impact: emotional, financial and practical strain
The organisation has blamed the backlog on the long time it took for new guidance on valuations to be agreed across all public service pension schemes. This revision was required following the McCloud pension remedy, a judgment handed down in 2018 which led to a new way of calculating the value of public service pensions.
Whilst Teachers’ Pensions have made several public apologies, this doesn’t compensate for the financial and emotional difficulties that have been caused from pausing divorce proceedings. People have been unable to move on with their lives. These delays have had an impact on the practical and financial implications of separating – for example, some couples have had to remain in the marital home, being unable to sell or remortgage it without an overall financial settlement, which is impossible in the absence of the teachers’ pension CEV. For those who have moved out to rental properties, some have had to extend tenancies beyond what they can afford. Hearings have been adjourned, and legal costs for the divorce have increased. Naturally, this has had a huge impact on many teachers’ mental wellbeing and has put families under great strain. This is why legal action has been launched.
What financial advisers need to know about teachers’ pensions
But are there alternative options to move forward with a divorce, and what should financial advisers be aware of and do to support those impacted? Whilst financial advisers and their clients may have a rough idea of what their teachers’ pension is currently worth, when comparing it with other pensions they hold, and those held by spouses who aren’t teachers, true values can differ. Self-Invested Personal Pensions, Final salary and Civil Service pensions can all differ in how their CEV is calculated, particularly because the stipulations of some pensions will decrease the value for the other side upon divorce. Therefore it’s important to have an accurate picture of each pension’s overall value, and how the various pensions held by either spouse in a divorce compare.
The risk of proceeding without a CEV
Couples in their twenties and without children, and with limited assets could theoretically proceed without a financial settlement (as their pensions will be much lower in value given the few years they’ve been in the workforce). But for those with children or nearing retirement age, this could be extremely risky.
It could leave parties exposed to financial vulnerability, due to agreeing shares of the finances without having an accurate picture of their asset values and how they weigh up against each other. This could lead to an unknowing imbalance between the share of the assets, which could have a detrimental impact, especially on provisions for children and retirement for one or both parties.
Practical ways advisers can support clients in limbo
To minimise the financial, emotional and legal burden of waiting for a valuation, it could be worth recommending to clients the following:
- Proceeding with child arrangements: If a client and their ex-spouse already agree on care of the children, they do not need to formalise this but could consider entering into a Parenting Agreement. If they disagree, they will need to attend mediation and, if they cannot agree there, make an application to court for a ‘child arrangements order’.
- Trying out options such as ‘nesting’ arrangements: For clients who can afford it, ‘nesting’ arrangements – where children remain in the same property, and the parents take turns living in the property to care for the children – could help ease the emotional strain and maintain routine for the children. While this can be expensive, it could also help reduce the stress and disruption caused by the divorce.
- Apply for a CEV straightaway: For clients about to begin divorce proceedings, advise them to apply for a CEV as soon as possible to mitigate possible delays.
- Exploring the possibility of separate orders: In limited circumstances, the courts will permit two orders to be made – one for the pension, and one for all other finances and assets. This means clients could agree on some of the finances in the meantime. However, as explained above, the court needs an accurate view of how much assets and savings are worth to decide how to split them fairly between both parties. It is only in particular circumstances where the court decides this could still be done fairly, in separate orders. Advisers should recommend that clients explore this possibility with their lawyers.
Looking ahead: managing expectations and minimising harm
Understandably, this limbo is causing emotional and logistical difficulties for families, and there is no easy way for financial advisers and lawyers to resolve the issues this is causing. But helping clients understand their options, which could mitigate the harm caused by the delays, could be beneficial.
Alistair Myles, Founding Partner at Ribet Myles
