What is a pension sharing order?

A pension sharing order is an order from the court for your pension to be shared with your ex. The detail of the pension share is set out in Form P1, which is attached as an annexe to any court order. The Form P1 details what percentage of the relevant pension should be shared. A pension sharing order is the most popular and favoured way to deal with pension sharing on divorce, but there are other options such as offsetting and pension attachment orders, which your lawyer will discuss with you if appropriate.

What is the cost of a pension report? And who pays the fee?

A report from a pension on divorce expert (PODE) will depend on a range of factors, including the number of pensions involved, the complexity of those pensions and the number of questions you put to the expert. The cost of reports is usually in the range of £1,500 to £2,500 and is usually equally shared between you and your partner. However, one of you may offer to pay for the report if you're in a stronger financial position than the other.

Who decides what percentage of a pension is shared?

Outside of court, you and your partner are free to negotiate whether there should be a pension sharing order, which pension(s) it involves and what the percentage of sharing should be. You may be guided by the CETVs for the pensions and advice from your lawyer about how pensions sit in relation to the rest of the case. If you've obtained a report from a pensions on divorce expert, then they'll advise you on a percentage share that will achieve the aims of both partners. Ultimately, if you and your partner cannot reach an agreement on the percentage, then the court or an arbitrator will decide.

What is the cost of a pension sharing order? And who pays the fee?

When the court makes a pension sharing order, the pension provider will need to implement the order. The provider may charge a fee to implement the order, which will often be a few hundred pounds. The specific amount will vary between providers so you should find out what the fee is before reaching a financial settlement. The implementation fee will usually be equally shared between you and your partner, but one of you may offer to pay for the report if you're in a financial position to do so.

What happens if a pension sharing order is not implemented?

There are specific regulations that set a timetable for the implementation of a pension sharing order. However, this could be delayed for various reasons, including one party not providing sufficient details to the provider to begin implementation, or administrative delay on the part of the pension provider. It's important for a pension sharing order to be implemented as soon as possible. This is because the nature of pensions means that the value could increase or decrease in a short space of time. If you have concerns that a pension sharing order has not been implemented or there have been delays to the implementation, then you should seek legal advice on what can be done.

My partner and I are not married. Can I still get a pension sharing order?

Pension sharing orders are only available if you're getting divorced or if you're dissolving a civil partnership.

How do I apply for a pension sharing order?

Pension sharing orders need to be formally applied for and approved by the court. This can be done by completing a Form A and sending this to the court (together with the court fee). Completing a Form A means you're asking the court to deal with your dispute. A court timetable will be put in place and will follow a series of steps and hearings that both you and your ex will need to comply with or attend. Before completing a Form A, you should speak to a specialist family lawyer to understand the options open to you. Many couples do come to an agreement about splitting their pensions outside of the courtroom. This means they only need a consent order from the court, which approves that agreement. Either way, without a court order, the pension scheme provider is unable to implement a pension sharing order.

How long does it take to implement a pension sharing order?

Although a pension sharing order can’t take effect until the decree absolute or final divorce order is granted, the pension scheme provider then has another four months to implement the order. This time starts running from the day the pension sharing order takes effect or the day the provider receives all the information it needs to implement the share (if that’s later).

I have significant pensions that were built up before I got married. Do I have to share these with my ex?

In England and Wales, all the pension assets belonging to a couple are considered. Whether these pensions are to be shared with your ex will depend on the other resources available in your case, and both of your respective needs.

I benefit from a pension sharing order. What do I need to do now?

In some cases, you might be able to join the original pension scheme. In other cases, you might need to transfer your pension share to a pension you already have or to a new pension. A financial planner will be able to help you understand your options.

My pension is already paying out. I won’t have to share this, will I?

Pension sharing orders are available for schemes where pensions are already being paid out, taken or drawn down. You may find the process a little more complicated and the fees charged could be higher.

Can a state pension be shared?

This is a little tricky because the answer depends on when you reached state pension age. If you reached state pension age before 6 April 2016, then your state pension comes in two parts – the basic state pension and the additional state pension. You may have built up entitlement under both or just the basic state pension. The basic state pension cannot be shared. However, the additional state pension can be shared. If you reached state pension age on or after 6 April 2016, you have a “new” state pension. This can‘t be shared. However, if you benefit from a “protected payment” (this is an extra payment on top of the full state pension), that can be shared.

Can my ex-wife or ex-husband claim my pension years after divorce in the UK?

When you divorce, it's important to deal with the financial arrangements at the same time and have a legally binding financial settlement. If you don't, your ex could be entitled to claim a share of your assets many years after your actual divorce, and this would include your pension.

How can I protect my pension in a divorce in England and Wales?

Pensions can be worth a significant amount, but ring-fencing a pension can be very difficult You could use a pre- or post-nuptial agreement and agree how your pensions are going to be dealt with if you divorce. Alternatively, if keeping your pension intact is important to you, you might be able to negotiate that as part of the financial settlement. It is possible for you to "buy-off" your ex's claim over your pension. This is called "off-setting" and involves substituting other capital for the pension.

I’m getting divorced in England but my spouse has different pensions overseas. Will I be able to seek a pension sharing order to ensure I receive my fair share?

As a general rule, the English court doesn’t have jurisdiction to make pension sharing orders in regards to overseas pensions unless the court is satisfied that an English pension sharing order would be implemented and enforced by the relevant pension provider. For this reason, it’s critical to obtain local advice in the jurisdiction where the pension is held at an early stage. If necessary, it may be possible to obtain a local order to enforce any pension sharing order that has been agreed during the English proceedings. If it’s not possible to obtain a local order in the relevant country, the existence of pension rights overseas is an important aspect to be considered by the court when determining financial proceedings. There are other options that can be explored, such as offsetting the pension against other assets or obtaining a maintenance order to ensure that pension monies are paid to you. It’s important to note that, unlike in England, there's no regulated process for valuing an overseas pension. This is a complex area of law; so it’s important to seek appropriate legal advice.

What is a pension sharing order?

A pension sharing order is an order from the court for your pension to be shared with your partner. The detail of the pension share is set out in Form P1, which is attached as an annexe to any court order. The Form P1 details what percentage of the relevant pension should be shared.

What is the cost of a pension report? And who pays the fee?

A report from a pension on divorce expert (PODE) will depend on a range of factors, including the number of pensions involved, the complexity of those pensions, and the number of questions you put to the expert. The cost of reports is usually in the range of £1,500 to £2,500 and is usually equally shared between you and your partner.

Who decides what percentage of a pension is shared?

Outside of court, you and your partner are free to negotiate whether there should be a pension sharing order, which pension(s) it involves, and what the percentage of sharing should be. If you have obtained a report from a pensions on divorce expert, then they will advise you as to a percentage share that will achieve the aims of both partners.

My partner and I are not married. Can I still get a pension sharing order?

Pension sharing orders are only available if you're getting divorced or if you're dissolving a civil partnership.

Dealing with pensions in divorce

Name: familylawvlogger - Pensions And Divorce- What Do I Need To Know And To Think About?
Uploaded: 2024-06-03T11:17:59.8238124+00:00
Description: This vlog looks at the things you need to think about if you are getting divorced and have a pension- what information do you need? How is a pension valued? What can you do to share the pension benefits? Caitlin Jenkins, the familylawvlogger, discusses all things pension with her Mills& Reeve partner and pension expert, Philip Way.

Dealing with the impact of divorce on pensions is rarely straightforward. Concerns may include whether pensions will be divided up and how this would affect income and retirement.

Pensions should be factored into any financial settlement on divorce, whether you're close to retirement age or not. Divorce and pensions can be complicated to deal with because each pension is different, with its own set of scheme rules and varying contributions. So, it's important to seek legal advice. This will inform you on how each pension may be treated in divorce. You can then consider how this affects the pension element of the divorce settlement you reach and your long-term financial security.

We're here to guide you through this difficult time. You can trust us to help you and support you every step of the way as our team of family lawyers has a wealth of experience dealing with pensions and divorce.

Award-winning divorce services
91% client satisfaction
Extensive industry recognition
Offices across England

How are pensions treated on divorce?

The starting point of a divorce is the sharing of matrimonial assets, including pensions. Pensions can be overlooked during divorce – particularly when you aren't close to retirement age. But they can be one of the largest assets in your case. You may be tempted to focus on tangible assets like a house or car, but it's also important to consider your future financial planning after separation, including what you'll do on retirement.

It's vital to get disclosure about any pensions to which either you or your partner are entitled, including state pension and the additional state pension. The first step would be to obtain a cash equivalent transfer value (CETV) for each pension, which will tell you what that pension is worth in pounds if you were to sell it on the open market. However, CETVs are not always an accurate summary of what a pension might be worth. Some pensions, such as defined benefit pensions and publicly funded pensions like the NHS, can be more valuable than their CETVs suggest.

It's also important to consider the terms of each pension scheme because this will tell you when you can draw on the pension, whether a capital lump sum can be drawn out, how and where the funds are invested, and how much income you may be able to draw from the pension.

Pensions are complicated and, to fully understand them, it may be necessary to instruct a pensions on divorce expert (PODE) to produce a report. This report will summarise pension sharing on divorce and how it could be done within your case to achieve objectives that you or your partner may have. For example, equalisation of income on retirement. Our lawyers are experienced in working alongside PODEs to obtain reports for our clients, explain what they mean and use the information to reach a settlement.

If you would like to talk about how we can help you, get in touch with our pension and divorce lawyers today.

How do our pensions and divorce lawyers help?

Pensions are often the most valuable – yet most overlooked – asset during divorces. So, it's well worth investing in the best expertise to ensure pensions are dealt with in the best way.

Our lawyers have unrivalled experience in dealing with pensions and we work with you to understand your objectives. Philip Way, a partner in our family law team, is chair of the legal committee behind the gold standard guidelines for professionals dealing with pensions on divorce.

We regularly advise on the role of pensions and on how your pension can be considered within a wider financial settlement. Here are some examples of just some of the issues we help our clients with:

Dealing with a range of pensions including public sector pensions, SIPPs (Self Invested Personal Pension), defined benefit schemes and defined contribution schemes.
Advising clients on pensions abroad and how they can be considered within a settlement.
Working with pensions on divorce experts (PODE) to fully understand pension arrangements before advising our clients on how the pensions should be considered within a settlement.
Advising clients on the implementation of pension sharing orders.
Advising clients on enforcement proceedings where an order has not been implemented.
We're well known for our expertise in advising on pensions with an international dimension.

Our services also extend further than just dealing with pensions on divorce. Our family lawyers can also assist you with the following:

Divorce
Business interests
Child arrangements: including child relocation, disagreements on schooling, grandparents' rights, and holidays abroad
Family trusts
Financial settlements
International family law

If you need our expertise in any of these areas, or just want to find out more about how we can help you, get in touch and one of our lawyers will assist you.

Who do our pensions on divorce lawyers work with?

We know that pensions and divorce can be tricky to navigate in all walks of life. This is why we're proud to work with a wide range of clients from various backgrounds, including:

Business owners, partners and entrepreneurs
International families
Professional and family trustees
Farming families
Sports people
People with a high profile in the entertainment industry
Medical professionals
Senior management and other professionals

Why choose Mills & Reeve's pensions on divorce lawyers?

With pensions on divorce being a complicated subject, you'll be looking for experienced lawyers who can make the situation easier. We know no two cases are the same, so we'll get to know your case in detail before we commence. This way, we can provide a tailor-made service that works for you.

Alongside this, here are some more reasons why you should consider instructing us as your pension and divorce solicitors:

We're members of Resolution, which is a national family justice organisation that ensures everything we do is done in a constructive and cost-effective way.
We're an award-winning law firm, and 2022 saw us win best corporate law firm, as well as getting recognition for being a great place to work and for our approach to innovation.
Our offices are nationwide, which means you shouldn't have to travel too far to find us. This includes bases in London, Manchester, and Leeds.
Our 2022 Fearless Feedback survey showed a client satisfaction score of 91% – up from 89%. This is because of our commitment to you and our company values.
We're regulated by the Solicitors Regulation Authority and are recognised by The Legal 500, Chambers and Partners, and The Law Society.
We're aiming to become Net Zero by 2050 and are a part of the Legal Sustainability Alliance.

"An impeccable level of service and responsiveness throughout."

Boasts a huge wealth of experience, common sense, approachability and legal skill.

"A centre of excellence."

"Fields a team of experts who clearly know what they are doing."

I can't thank you enough for your calmness, professionalism and skill. You have been an anchor.

Frequently Asked Questions

What is a pension sharing order?

A pension sharing order is an order from the court for your pension to be shared with your ex. The detail of the pension share is set out in Form P1, which is attached as an annexe to any court order. The Form P1 details what percentage of the relevant pension should be shared. A pension sharing order is the most popular and favoured way to deal with pension sharing on divorce, but there are other options such as offsetting and pension attachment orders, which your lawyer will discuss with you if appropriate.
What is the cost of a pension report? And who pays the fee?

A report from a pension on divorce expert (PODE) will depend on a range of factors, including the number of pensions involved, the complexity of those pensions and the number of questions you put to the expert. The cost of reports is usually in the range of £1,500 to £2,500 and is usually equally shared between you and your partner. However, one of you may offer to pay for the report if you're in a stronger financial position than the other.
Who decides what percentage of a pension is shared?

Outside of court, you and your partner are free to negotiate whether there should be a pension sharing order, which pension(s) it involves and what the percentage of sharing should be. You may be guided by the CETVs for the pensions and advice from your lawyer about how pensions sit in relation to the rest of the case. If you've obtained a report from a pensions on divorce expert, then they'll advise you on a percentage share that will achieve the aims of both partners. Ultimately, if you and your partner cannot reach an agreement on the percentage, then the court or an arbitrator will decide.
What is the cost of a pension sharing order? And who pays the fee?

When the court makes a pension sharing order, the pension provider will need to implement the order. The provider may charge a fee to implement the order, which will often be a few hundred pounds. The specific amount will vary between providers so you should find out what the fee is before reaching a financial settlement. The implementation fee will usually be equally shared between you and your partner, but one of you may offer to pay for the report if you're in a financial position to do so.
What happens if a pension sharing order is not implemented?

There are specific regulations that set a timetable for the implementation of a pension sharing order. However, this could be delayed for various reasons, including one party not providing sufficient details to the provider to begin implementation, or administrative delay on the part of the pension provider.

It's important for a pension sharing order to be implemented as soon as possible. This is because the nature of pensions means that the value could increase or decrease in a short space of time.

If you have concerns that a pension sharing order has not been implemented or there have been delays to the implementation, then you should seek legal advice on what can be done.
My partner and I are not married. Can I still get a pension sharing order?

Pension sharing orders are only available if you're getting divorced or if you're dissolving a civil partnership.
How do I apply for a pension sharing order?

Pension sharing orders need to be formally applied for and approved by the court. This can be done by completing a Form A and sending this to the court (together with the court fee).

Completing a Form A means you're asking the court to deal with your dispute. A court timetable will be put in place and will follow a series of steps and hearings that both you and your ex will need to comply with or attend. Before completing a Form A, you should speak to a specialist family lawyer to understand the options open to you.

Many couples do come to an agreement about splitting their pensions outside of the courtroom. This means they only need a consent order from the court, which approves that agreement. Either way, without a court order, the pension scheme provider is unable to implement a pension sharing order.
How long does it take to implement a pension sharing order?

Although a pension sharing order can’t take effect until the decree absolute or final divorce order is granted, the pension scheme provider then has another four months to implement the order. This time starts running from the day the pension sharing order takes effect or the day the provider receives all the information it needs to implement the share (if that’s later).
I have significant pensions that were built up before I got married. Do I have to share these with my ex?

In England and Wales, all the pension assets belonging to a couple are considered. Whether these pensions are to be shared with your ex will depend on the other resources available in your case, and both of your respective needs.
I benefit from a pension sharing order. What do I need to do now?

In some cases, you might be able to join the original pension scheme. In other cases, you might need to transfer your pension share to a pension you already have or to a new pension. A financial planner will be able to help you understand your options.
My pension is already paying out. I won’t have to share this, will I?

Pension sharing orders are available for schemes where pensions are already being paid out, taken or drawn down. You may find the process a little more complicated and the fees charged could be higher.
Can a state pension be shared?

This is a little tricky because the answer depends on when you reached state pension age.

If you reached state pension age before 6 April 2016, then your state pension comes in two parts – the basic state pension and the additional state pension. You may have built up entitlement under both or just the basic state pension. The basic state pension cannot be shared. However, the additional state pension can be shared.

If you reached state pension age on or after 6 April 2016, you have a “new” state pension. This can‘t be shared. However, if you benefit from a “protected payment” (this is an extra payment on top of the full state pension), that can be shared.
Can my ex-wife or ex-husband claim my pension years after divorce in the UK?

When you divorce, it's important to deal with the financial arrangements at the same time and have a legally binding financial settlement. If you don't, your ex could be entitled to claim a share of your assets many years after your actual divorce, and this would include your pension.
How can I protect my pension in a divorce in England and Wales?

Pensions can be worth a significant amount, but ring-fencing a pension can be very difficult You could use a pre- or post-nuptial agreement and agree how your pensions are going to be dealt with if you divorce.

Alternatively, if keeping your pension intact is important to you, you might be able to negotiate that as part of the financial settlement. It is possible for you to "buy-off" your ex's claim over your pension. This is called "off-setting" and involves substituting other capital for the pension.
I’m getting divorced in England but my spouse has different pensions overseas. Will I be able to seek a pension sharing order to ensure I receive my fair share?

As a general rule, the English court doesn’t have jurisdiction to make pension sharing orders in regards to overseas pensions unless the court is satisfied that an English pension sharing order would be implemented and enforced by the relevant pension provider. For this reason, it’s critical to obtain local advice in the jurisdiction where the pension is held at an early stage. If necessary, it may be possible to obtain a local order to enforce any pension sharing order that has been agreed during the English proceedings.

If it’s not possible to obtain a local order in the relevant country, the existence of pension rights overseas is an important aspect to be considered by the court when determining financial proceedings. There are other options that can be explored, such as offsetting the pension against other assets or obtaining a maintenance order to ensure that pension monies are paid to you. It’s important to note that, unlike in England, there's no regulated process for valuing an overseas pension. This is a complex area of law; so it’s important to seek appropriate legal advice.

Pensions and divorce - what do I need to know and think about?

This vlog looks at the things you need to think about if you are getting divorced and have a pension- what information do you need? How is a pension valued? What can you do to share the pension benefits? Caitlin Jenkins, the familylawvlogger, discusses all things pension with her Mills& Reeve partner and pension expert, Philip Way.

Pensions & divorce

Dealing with pensions in divorce

How are pensions treated on divorce?

How do our pensions and divorce lawyers help?

Our pensions on divorce lawyers

Who do our pensions on divorce lawyers work with?

Why choose Mills & Reeve's pensions on divorce lawyers?

Frequently Asked Questions

Pensions and divorce - what do I need to know and think about?

Why are we pension on divorce experts?

Further reading

Bennifer breakup: what does a short marriage mean for their divorce?

What does “matrimonialisation of assets” mean and why should it bother me?

Visitors

Existing clients

Staff