New research shows just how much of a financial toll divorce is having on Irish people’s pensions and retirement. An overwhelming majority (99%) of financial advisors surveyed report that Irish people are losing out on their pensions as a result of divorce or separation proceedings.
A surge in divorce and separation is leading to more Irish people facing court orders that divide pension benefits between former partners[1], with almost seven in ten (68%) advisors reporting an increase in the use of Pension Adjustment Orders (PAOs) over the past five years.
A new survey of 215 financial advisors nationwide, undertaken by leading pension trustees, Independent Trustee Company (ITC), which explored the experience of advisors dealing with pension clients, found:
- More than half of advisors (54%) say that pensions either currently are – or will in the future be – their client’s most valuable asset (see Table 1 in Appendix).
- More than four in ten (42%) report that people often lose out on pension benefits as a result of divorce or separation, while a further 51% say this happens sometimes. 6% say that in their experience, this is always happening.
- Around one in eight (13%) advisors report that there has been a significant increase in the number of people using PAOs over the last five years, while more than half (55%) say there has been a small increase in the number using these court orders (see Table 4 in Appendix).
Commenting on the survey findings, Glenn Gaughran, head of business development with the Independent Trustee Company (ITC) said:
“Divorce or separation takes a huge financial toll on divorced couples – because of the costs of divorce and the major changes in living and family arrangements that often follow the split.
The impact on a pension – and in turn, an individual’s retirement – can be significant. A personal or occupational pension will always be taken into account when reaching a financial settlement as part of a divorce and indeed one of the most valuable benefits that a court can order to be shared between divorced spouses is a pension.”
Under-rated pensions
Almost six in ten (59.5%) advisors responding to the ITC survey believe the value of pensions is either always or often underestimated by spouses in divorce proceedings. An additional one-third (33.5%) say this sometimes happens (see Table 2 in Appendix).
Commenting on this aspect of the research, Mr Gaughran said:
“Pensions are often overlooked when couples are considering a divorce. We think of the family home as being the primary asset, but many people still have substantial mortgages, so the net value of the property can be less than we think.
In contrast, pensions, particularly those to which an employer makes significant contributions, can grow to be worth quite a bit.
Given the increase in the number of divorce and separation cases coming before the courts, couples that are splitting up need to have a good understanding of the value or their own – and their ex-partner’s pension – and also to be mindful of the impact that those proceedings could have on their own pensions and retirement.”
Increase in divorce cases
Divorce rates have risen sharply since 2019, following a change in the law that reduced the mandatory separation period before filing for divorce from four years to two[2]. According to the Courts Service[3], 4,550 divorces were granted in 2025 - 28% more than in 2019[4], while divorce applications increased by 24% over the same period.
Mr Gaughran added:
“As the number of divorce cases before the courts continue to grow, more and more people are likely to find that their pension forms part of a settlement agreement. While it’s important that assets are distributed fairly as part of a divorce settlement, this can have a significant impact on retirement planning for both parties involved. A reduction in pension benefits may affect a person’s expected retirement income and standard of living in later life.
For this and many other reasons it’s important that people seek professional and financial advice when going through a divorce or separation.”
[1] These court orders are known as Pension Adjustment Orders (PAOs).
[2] Changes came into effect on December 1, 2019
[3] As per Courts Service Annual Report for 2025, published in July 2026
[4] There were 5047 divorce applications in 2025 compared to 4073 in 2019 as per Courts Service Annual Report for 2025 and Courts Service Annual Report for 2019
