Offset simply means that pension fund values are considered when valuing all of the matrimonial assets to calculate an appropriate settlement on divorce.

A simple example of this might be where Mr A has pension benefits worth £500,000 and the other marital assets are also worth £500,000.

With an offset arrangement, Mr A might keep the pension assets worth £500,000 and Mrs A would keep the marital assets worth £500,000.

When using offset, the ex-spouse would need to carefully consider their future retirement income provision.

In the example above, Mrs A might have received all of the other marital assets but she would be left with no pension provision for her retirement.