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Pension Sharing Orders: Splitting Pensions on Divorce | LegalDocuments.co.uk

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Part ofFamily & Divorce

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
When a marriage or civil partnership breaks down, pensions are often one of the largest financial assets in play, sometimes worth more than the family home. Yet they are also one of the most misunderstood parts of a financial settlement. A Pension Sharing Order is one of the mechanisms the court in England and Wales can use to split pension rights between separating spouses, giving each person their own share to take forward independently. This guide walks through what a Pension Sharing Order does, which pensions fall within its reach, how the court calculates the split, and the practical steps involved in putting one in place. Whether you are at the early stages of separation or already working through a financial settlement, understanding how pensions can be divided will help you make informed decisions about what to ask for and what to agree to.

What this document is

A Pension Sharing Order is a specific type of court order made as part of financial remedy proceedings following divorce, dissolution of a civil partnership or annulment. It transfers a defined percentage of one party's pension rights to the other, creating what is known as a pension credit for the receiving spouse and a corresponding pension debit against the pension holder's scheme.

The practical effect is a clean break in pension terms. Once the order has been implemented by the pension scheme administrator, each person holds their own pension entitlement in their own name. The receiving spouse either becomes a member of the original scheme in their own right or transfers the credit to an alternative arrangement, depending on what the scheme rules permit.

This is different from pension offsetting (where one spouse keeps the pension and the other receives a larger share of other assets) and from pension attachment orders (where payments are redirected when the pension starts paying out). A sharing order is generally seen as the cleanest option because it severs financial ties at the point the order takes effect, rather than leaving either party dependent on the other's future decisions.

How to use this document

  1. Gather pension information early. Each party should request a Cash Equivalent Transfer Value (CETV) from every pension scheme they belong to. The CETV is the figure the court uses as the starting point for valuing pension rights, and schemes are generally required to provide it on request. Gathering this information at the outset avoids delays later. 2. Disclose finances in full. Both spouses must complete financial disclosure, usually on Form E, listing all assets including pensions, property, savings, investments and debts. Incomplete disclosure can lead to an order being set aside later, so it is worth being thorough. Pension statements, scheme booklets and recent annual benefit statements should all be included. 3. Consider whether an expert report is needed. For defined benefit pensions, public sector schemes or where the pensions are complex, a Pension on Divorce Expert (PODE) report is often instructed. The PODE advises on how to achieve equality of income or equality of capital in retirement, which may mean a percentage split that does not look like 50:50 on paper. 4. Reach agreement or apply to the court. Couples can agree the pension split through negotiation, mediation or solicitor-led discussion, and then ask the court to approve it by consent. If agreement cannot be reached, either party can apply for financial remedy and the court will decide the appropriate division after considering the factors in section 25 of the Matrimonial Causes Act 1973. 5. Implement the order through the pension scheme. Once the court has made the Pension Sharing Order, it is sent to the scheme administrator along with the decree absolute or final order. The scheme then has a statutory period, typically four months, to implement the split. Administration charges usually apply and should be agreed between the parties in advance.
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Common questions

Q Can a Pension Sharing Order be made without going to court?
No. Even where both spouses agree on how to divide a pension, a Pension Sharing Order can only take effect if it is contained in a court order. Couples can reach agreement through negotiation or mediation and then ask the court to approve the terms by consent, but the order itself must come from the court. Pension schemes will not act on a private agreement alone.
Q Which pensions can be shared on divorce?
Most private and workplace pensions fall within scope, including occupational schemes, personal pensions, stakeholder pensions, retirement annuity contracts and Additional Voluntary Contributions. The additional State Pension built up under the old system can also be shared in some cases. The basic State Pension and the new single-tier State Pension cannot be divided by a Pension Sharing Order, although National Insurance credits may be affected in other ways.
Q What is a Cash Equivalent Transfer Value?
The Cash Equivalent Transfer Value (CETV) is the capital value a pension scheme places on a member's benefits at a particular date. It represents what would theoretically need to be transferred out to replicate those benefits elsewhere. Courts use the CETV as a starting point, but it can understate the true worth of defined benefit pensions, which is why expert reports are often commissioned for final salary schemes.
Q Is a 50:50 split always fair?
Not necessarily. An equal split of the CETV may not produce equal income in retirement, particularly where one spouse is already drawing benefits, where ages differ significantly, or where defined benefit and defined contribution pensions are being compared. The court can order whatever percentage it considers fair having regard to the parties' overall financial circumstances and the statutory factors it is required to consider.
Q Are there alternatives to a Pension Sharing Order?
Yes. Pension offsetting allows one spouse to keep their pension while the other receives a larger share of other assets such as the family home. A pension attachment order (sometimes called earmarking) redirects a portion of the pension payments when they begin. Each approach has trade-offs around cleanness of break, long-term risk and tax treatment, and the right choice depends on the couple's circumstances.
Q How long does implementation take?
Once the sealed order and final divorce order are sent to the pension scheme, the scheme generally has four months to implement the share under statutory rules. In practice it can take longer where schemes require additional information or where the pension is complex. Both parties are usually responsible for a share of the administration charges, which vary between providers.
Q Can a Pension Sharing Order be changed later?
Once implemented, a Pension Sharing Order is generally final and cannot be varied. This is different from spousal maintenance, which the court can revisit. Because the effect is permanent, it is important to get the decision right first time, ideally with input from a financial adviser or pensions expert where the numbers are significant.
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Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.