A couple wished to divorce, both worked – one in the public sector, one in the private sector. Both earned good salaries, but the one in the private sector earned substantially more.
A couple going through a divorce both had long-term careers—one in the public sector and one in the private sector. Both earned good salaries, but the private sector spouse had a notably higher income. Initially, the public sector spouse believed this imbalance meant they should receive a larger share of the assets.
At first glance, the higher income appeared to tilt the scales. But a full financial analysis revealed a different story. The public sector employee had accrued a defined benefit pension with a generous projected value, offering a secure income for life. In contrast, the private sector spouse had only a modest defined contribution pension with far less long-term certainty.
Once pension valuations were properly calculated and added into the marital balance sheet, it became clear that the public sector pension held significant long-term value—comparable to or even exceeding the asset advantage the private sector spouse seemed to have.
The valuations showed that the spouses held different kinds of financial advantages. The private sector spouse had the stronger current income, while the public sector spouse had greater certainty in retirement.
Once both positions were considered alongside property, savings, liquidity and earning capacity, the apparent imbalance became much smaller. Comparing salaries alone would have provided an incomplete picture of their respective financial positions.
Including the pension in the overall financial picture weakened the argument for an unequal division of the other assets. The negotiations could instead consider the balance between resources available immediately and the income each spouse could expect in retirement.
The parties reached a settlement without proceeding to trial, reducing the cost and uncertainty of further litigation. The agreement was ultimately approved by the judge.
This case reflects a wider issue in Irish divorce settlements. A July 2026 Irish Times report on pensions and divorce covered a survey of 215 financial planners conducted by Independent Trustee Company. Some 99 per cent of the planners surveyed believed that people were losing pension benefits as a result of divorce or separation proceedings.
Some 54 per cent of respondents said that pensions were, or would become, their clients’ most valuable financial asset. The report also found that 68 per cent had seen at least some increase in the use of Pension Adjustment Orders during the previous five years.
It also claimed that as the number of divorces increases, more couples are likely to find that pensions accumulated over many years form an important part of their settlement negotiations.
The experience in this case shows why the family home and current income should not be considered in isolation. A pension may be less immediately visible, but its effect on each spouse’s long-term financial security can be substantial.
A valuable pension is not automatically divided equally between spouses. There is no general rule in Ireland that an ex-spouse receives half of the other spouse’s pension.
The pension forms part of the overall financial circumstances considered when deciding how proper provision can be made for both spouses. Depending on the case, a court may make a Pension Adjustment Order, or the pension value may influence how property, savings and other assets are dealt with as part of the settlement.
Where pension benefits are to be divided, the arrangement must be properly reflected in a court order. A private agreement between the spouses cannot, by itself, require pension trustees to divide the benefits.
For a broader explanation, read our guide to pensions and divorce in Ireland and our article on financial settlements in divorce.
In Ireland, pensions are often one of the most valuable marital assets—but also one of the least understood. Public sector pensions, in particular, can carry considerable value that isn’t obvious at first glance. Properly valuing and considering these in divorce negotiations is essential to reaching fair and informed outcomes, and can often prevent costly court proceedings.
Before agreeing to a divorce settlement, both spouses should understand what pensions exist, what type of benefits they provide and what those benefits may be worth over the long term. This is particularly relevant where either spouse has a public-sector or defined benefit pension, or where there is a substantial difference between the spouses’ current incomes and retirement provision.
For more information about how pensions, property and other financial resources may be considered together, read our guide to how assets are divided in a divorce in Ireland.
