A Pension Sharing Order is an order from a court when you divorce or dissolve your civil partnership that says you should share a pension that has been built up during the marriage/civil partnership with your spouse. When you receive a pension sharing order, you or your spouse automatically receive a separate pension entitlement either now or when you receive your pension. It is a common way to achieve financial equality when one spouse has a significantly larger pension.
What is a pension sharing order in divorce?
A pension sharing order is a legal directive that divides a pension between divorcing spouses, usually as part of a fair financial resolution. With a pension sharing order, one spouse is entitled to their own pension fund, which can begin either at that time or at retirement.
Can I apply for a pension sharing order?
During divorce proceedings or dissolution of a civil partnership, either party can request a pension sharing order when agreeing on financial splits. It’s important to note that the court takes many factors into consideration when granting this order, with fairness and contribution to the marriage being key factors.
Can all pensions be shared?
No. Pensions accrued from defined contribution pensions and defined benefit pensions can be shared. If you received a pension prior to the marriage or inherited one during the marriage, it cannot be shared with your ex-spouse unless you added funds to it during your marriage.
How is the pension divided?
The percentage that your pension is shared depends on the court’s decision of what is fair to both parties. They take into consideration many factors, including marriage length, contribution, and each individual’s financial status.
Does a pension sharing order affect retirement age?
No. The receiving spouse will normally access their pension when they want in accordance with the rules of that pension scheme. This may be different from when the pension was accessible to the pension’s original owner.
Can a pension sharing order be varied later?
Generally no. A pension sharing order is made by the Court, so once it’s been implemented, you cannot normally change it without applying to the court for a variation, which would require exceptional circumstances.
What’s the difference between a pension attachment order and a pension sharing order?
A pension attachment order pays a portion of the pension to the ex-spouse when it is paid, whereas a pension sharing order creates a separate pension fund for the receiving spouse.
Will I need a solicitor to help me make an application for a pension sharing order?
Yes. It’s important to receive professional advice when making a pension sharing order. The order must be specifically worded and carefully implemented in line with pension scheme rules and Court procedures.