CHANGES to pension arrangements could open up a new front in divorce cases, a law firm has warned.

Ward Hadaway says a Government move to free up people's pension pots instead of making them buy annuity policies will make it easier to split pension assets in divorce proceedings.

The firm, which has offices in Newcastle, said pensions are likely to form an increasingly important part of negotiations between partners when relationships end.

Teresa Davidson, a partner in its family law team, said: “Until now, splitting pension arrangements in divorce proceedings has been a complicated task.

“This has made pension sharing orders and similar arrangements less common, with spouses often trading off other assets rather than going to the effort and expense of sharing a pension pot.

“However, the changes to pensions law due to come into effect in April next year mean retirees will be able to do as they please with their pension pot from the age of 55, with the exception of final salary or career average pensions.

“The changes mean pension assets will be much more easily split in divorce proceedings, if viewed as cash sums available from the age of 55.

“As a result, we may see many more divorce cases where the pension pots of either or both partners take centre stage in the proceedings.”

Ms Davidson added while freeing up of pension pots doesn’t prevent people from buying lifetime annuities or other investments with the money which they have built up, it does mean there are fewer complicating factors when it comes to assessing the value of a pension in a divorce case.