Divorcing couples are increasingly raiding their pension pots in order to reach financial settlements as the recession has had a profound impact on individual savings and liquid assets according to Sweet & Maxwell.

The legal information provider said that as a result of difficulties with lump sum payments to complete divorce agreements, there has been a significant increase in orders concerning pension sharing arrangements, which jumped by 11 per cent in the last year.

The company also stated that the number of pension-related agreements is also a direct result of the rising age of divorcees, signifying that pension funds account for a larger proportion of a couple’s combined wealth.

Manches LLP partner James Stewart said: “The global financial crisis has led to a situation where fewer couples are able to achieve a clean break award, where capital and maintenance claims are both dismissed.

“Liquidity is now a serious issue in many cases. Homes can be difficult to sell and business interests are often difficult to realise, so fewer people have the funds available for a cash settlement. As a result, lawyers are looking much more closely at pensions, and in my experience, the number of pension sharing orders has increased markedly over the course of these past two years.”

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