Pension sharing order
For many people, their pension can be the largest asset after the matrimonial home. If one party has significantly more in pension funds than the other at the point of separation, then there will be consideration given to whether a pension sharing order would be appropriate.
Most people have pension provision, even if only by virtue of a workplace pension, so it is quite surprising that only 12% of financial orders on divorce contain a pension sharing order. This suggests many are at risk of under-settling or paying insufficient attention to their long-term needs
What is a pension sharing order?
A pension sharing order will ensure comparable pension income on retirement for both parties
In order for there to be a pension sharing order, the parties must be married. A cohabiting couple would not be able to obtain an order of this nature.
How do I get a pension sharing order?
A pension sharing order can only be made by a court. This can be done either via a court order within financial remedy proceedings or by way of a consent order where both parties agree upon how the pension is to be divided.
Certain forms are needed, for both the order and to send to the pension provider. Your solicitor will help you with this.
Which pensions can be considered?
Pension sharing orders can cover personal pension schemes (this can include money purchase schemes and self-invested pension plans) as well as occupational schemes (pension which has been built up through employment).
The court, when considering whether to make a pension sharing order, considers the total value of pension both parties have built up.
Can a pension be a non-matrimonial asset?
On occasion, a spouse may wish to argue that a pension built up prior to the marriage or after separation is a non-matrimonial asset. Whilst the court can ring-fence this asset, it will depend on all the circumstances of the case. If the other spouse’s needs cannot be met from other assets, then all pension provision is likely to be included when looking at sharing the assets.
It is advisable that you seek specialised legal representation in respect of the negotiations and drafting of a pension sharing order to ensure that you reach a fair settlement.
Download our guide to find out more about a pension sharing order and how to navigate this when divorcing, including top tips to make the process as smooth as possible.
Download here: Guide to navigating a pension sharing order
Pension sharing order
For many people, their pension can be the largest asset after the matrimonial home. If one party has significantly more in pension funds than the other at the point of separation, then there will be consideration given to whether a pension sharing order would be appropriate.
Most people have pension provision, even if only by virtue of a workplace pension, so it is quite surprising that only 12% of financial orders on divorce contain a pension sharing order. This suggests many are at risk of under-settling or paying insufficient attention to their long-term needs
What is a pension sharing order?
A pension sharing order will ensure comparable pension income on retirement for both parties
In order for there to be a pension sharing order, the parties must be married. A cohabiting couple would not be able to obtain an order of this nature.
How do I get a pension sharing order?
A pension sharing order can only be made by a court. This can be done either via a court order within financial remedy proceedings or by way of a consent order where both parties agree upon how the pension is to be divided.
Certain forms are needed, for both the order and to send to the pension provider. Your solicitor will help you with this.
Which pensions can be considered?
Pension sharing orders can cover personal pension schemes (this can include money purchase schemes and self-invested pension plans) as well as occupational schemes (pension which has been built up through employment).
The court, when considering whether to make a pension sharing order, considers the total value of pension both parties have built up.
Can a pension be a non-matrimonial asset?
On occasion, a spouse may wish to argue that a pension built up prior to the marriage or after separation is a non-matrimonial asset. Whilst the court can ring-fence this asset, it will depend on all the circumstances of the case. If the other spouse’s needs cannot be met from other assets, then all pension provision is likely to be included when looking at sharing the assets.
It is advisable that you seek specialised legal representation in respect of the negotiations and drafting of a pension sharing order to ensure that you reach a fair settlement.
Download our guide to find out more about a pension sharing order and how to navigate this when divorcing, including top tips to make the process as smooth as possible.
Download here: Guide to navigating a pension sharing order