A pension is often one of the most valuable assets a couple owns, sometimes the most valuable, yet it is one that many people often overlook when they divorce. A pension sharing order is the main legal tool for dividing that asset fairly.
This guide explains what a pension sharing order is, how it works, what it costs, how long it takes, and the situations that catch people out, so you can approach your settlement knowing what to ask for and why.
In short: A pension sharing order is a court order, made as part of a financial settlement on divorce or dissolution in England and Wales, that transfers a percentage of one person’s pension to the other. The receiving spouse gets a “pension credit” that becomes their own pension; the other receives a matching “pension debit”. It creates a clean break on the pension: once the order is implemented, the two pensions are entirely separate and neither person has any further claim on the other’s share.
Pensions are complicated, and getting the split wrong can cost tens of thousands of pounds over a retirement. Speak to our pensions on divorce solicitors for a free 30-minute consultation before you agree to anything.
What is a pension sharing order?
A pension sharing order is a court order that splits one or more pensions between divorcing or dissolving spouses or civil partners. It gives a fixed percentage of the pension’s value to the other person, who then holds it as a pension in their own right.
Pension sharing was introduced by the Welfare Reform and Pensions Act 1999 and has been available for divorce and dissolution proceedings started on or after 1 December 2000.
When a pension is shared, two things happen at once:
- The person whose pension is being split receives a pension debit, reducing the value of their pension by the shared percentage.
- The other person receives a pension credit of the same value, which becomes their own pension.
The order is expressed as a percentage rather than a fixed sum, so it tracks any movement in the pension’s value between the valuation date and the date the order is put into effect. A pension sharing order can be made over almost any kind of pension, including defined contribution (money purchase) pensions, defined benefit (final salary and career average) schemes, and most public sector schemes such as the NHS, Teachers’ and Armed Forces pensions.
It is one of three ways pensions can be dealt with on divorce, alongside offsetting and pension attachment, which are compared further down this guide.
How does a pension sharing order work?
Once a pension sharing order takes effect, the pension provider transfers the agreed percentage out of the member’s pension and sets up the pension credit for the other person. How that credit is held depends on the scheme, and this is where the practical detail matters.
Internal versus external pension sharing
There are two ways a pension credit can be held, and the difference affects your retirement options:
- Internal sharing: the credit stays inside the same scheme, and you become a member of that scheme in your own right. This is common with public sector and defined benefit schemes.
- External sharing: the credit is transferred out to a different pension of your choosing, such as a personal pension or your own workplace scheme.
Some schemes only offer one option. A number of unfunded public sector schemes, such as the NHS, Civil Service and Armed Forces’ schemes, only allow internal sharing, so the receiving person becomes a member of that scheme rather than taking the money elsewhere. Knowing which applies to your pension shapes what you can do with the credit and when you can draw it.
How are pensions valued and split on divorce?
Before a pension can be shared, it has to be valued. The starting point is the Cash Equivalent Transfer Value (CETV), which the pension provider supplies on request.
The cash equivalent is not always a reliable guide to what a pension is really worth, particularly for defined benefit schemes, where it can significantly understate the value of the income the pension will pay in retirement. For anything other than a straightforward money purchase pension, a Pensions on Divorce Expert (PODE), usually an actuary, is often instructed to report on the fair way to split the pensions and the percentage needed to achieve the intended outcome.
The court does not automatically split pensions 50:50. The aim is fairness, which may mean equalising the pensions themselves, equalising the income each person will receive in retirement, or something in between, depending on your ages, health, the length of the marriage and your wider finances. Our guide on how assets are valued on divorce explains the wider valuation process.
Pension sharing vs pension offsetting vs pension attachment
Pension sharing is one of three routes. Choosing the right one depends on your circumstances, your other assets and how much certainty you want.
| Option | How it works | Clean break? | Best suited to |
|---|---|---|---|
| Pension sharing | A percentage of the pension transfers to the other person as their own pension. | Yes | Most cases; gives certainty and independence. |
| Offsetting | One keeps their full pension; the other receives a larger share of another asset, such as the house, to balance it. | Yes | Where one person wants a specific asset e.g. property and the figures allow a fair trade. |
| Pension attachment (earmarking) | A share of the pension income or lump sum is paid to the other person when the pension owner draws it. | No | Limited situations; now rarely used. |
Pension attachment, historically called earmarking, keeps former partners financially tied together. The receiving person has to wait until the pension owner chooses to retire, gets nothing if the owner dies first (depending on the terms), and payments linked to maintenance can end on remarriage.
For most couples a pension sharing order is preferred because it delivers a clean break, which is why it has become the standard approach. You can read more about achieving a clean break order as part of your financial settlement.
How do you get a pension sharing order?
A pension sharing order is not automatic and cannot be made by agreement alone; it has to be approved by the court, even when you and your ex agree on everything. The usual steps are:
- Full financial disclosure. Both of you set out your finances, including up-to-date pension valuations, normally on a Form E or its equivalent.
- Valuation and expert input. Pension values are obtained and, where needed, a PODE report is prepared to recommend the sharing percentage.
- Agreement or court decision. You either negotiate a settlement or, if you cannot agree, the court decides at a financial remedy hearing.
- A financial order is drawn up. The terms, including the pension sharing percentage, are recorded in a consent order (if agreed) or an order imposed by the court (if not).
- The court seals the order and a pension sharing annex is sent to the pension provider to implement.
The order can only be applied for within divorce or dissolution proceedings, and it only takes legal effect once the divorce itself is finalised. To understand the wider settlement this sits within, see our guide on what you are entitled to in a divorce settlement.
Getting the percentage and the scheme details right is technical work, and mistakes are expensive to unwind. Talk to our pension sharing solicitors before you commit to a figure.
How long does a pension sharing order take?
Once the order is sealed and the divorce is finalised, the pension provider has a statutory implementation period of four months from the date it receives all the documents and information it needs to put the order into effect.
In practice, the whole process usually takes longer than four months, because the financial settlement and the divorce itself have to be concluded first. From starting proceedings to the pension credit being in place, several months to a year is common, and complex or contested cases take longer.
How much does a pension sharing order cost, and who pays?
A pension sharing order is not free, and the costs come from several sources. The main ones are:
| Cost | Typical range | Notes |
|---|---|---|
| Pension provider’s implementation charge | Significant variation — can range from £500 to £5,000 depending on complexity | Some schemes charge considerably more; ask the provider for their schedule. |
| Court fee for the financial order | £62 for a consent order (where both partners agree) or £321 to apply for a financial order (where the court decides) | Paid when the financial order application is lodged. |
| PODE or actuarial report | Roughly £500 to £2,000+ | Only needed for some pension cases |
| Solicitors’ fees | Varies | Depends on whether matters are agreed or contested. |
Who pays the pension sharing order fees is decided as part of the settlement. The pension scheme’s own charge can be paid by either person or split between you, and the order or consent order will usually state how it is to be apportioned. Many schemes deduct their charge from the relevant pension if it is not paid up front.
Can you get a pension sharing order after the final order?
A pension sharing order should be sorted out as part of the divorce, not afterwards. The order can only take effect once the final order (the decree that legally ends the marriage, called the decree absolute before April 2022) has been granted, but the financial settlement, including any pension sharing, should be agreed and sealed by the court before or alongside it.
If your divorce was finalised without a financial order resolving the pensions, your financial claims may still be open, and it can be possible to apply later. This is riskier and more complicated, and remarriage can bar you from bringing certain claims at all. If your divorce went through without a financial settlement, take advice quickly. Our guide on how long your ex can claim against your pension after divorce explains the time limits and risks.
Pension sharing orders and death
If the transferring party dies before a pension sharing order takes effect, the pension share is unenforceable against the pension scheme. Provided there is not yet a final order or decree absolute in the divorce, the transferee may be entitled to spouse or dependent benefits, depending on the scheme rules.
If the transferring party dies after it takes effect but before the order can be implemented, then the pension share will still take place.
If the receiving party dies before the pension sharing order can be implemented, then the order stands unless a successful application can be made to set that order aside.
If you find yourself in this situation, you should seek immediate legal advice to understand your position and what to expect.
Can a pension sharing order be cancelled or changed?
A pension sharing order can be cancelled or set aside before it takes effect, typically through variation, appeal, or in exceptional circumstances such as a fundamental change in the parties’ circumstances. Once the order has taken effect and been implemented, cancellation is not generally possible.
What if the order is not implemented, or my spouse will not share pension details?
If a pension provider fails to implement a pension sharing order within the required period without good reason, then it may be possible to ask for help from the Pensions Ombudsman. You may also be entitled to compensation for any losses you experience in the meantime.
If your spouse refuses to provide pension details – there is a legal duty to provide a full and frank disclosure of financial information during divorce proceedings, including an account of all assets, such as pensions. If your spouse refuses to provide details of their pension, you can take legal action to force them to provide this information.
Can I take a lump sum from a shared pension?
Usually not straight away. A pension credit is normally transferred into a pension, so it follows the usual pension access rules rather than being paid out as cash when the pension is shared.
Whether you can take a lump sum may also depend on whether the original pension holder had already taken pension benefits before the pension was shared. This can affect the options available to you.
Once you reach the minimum pension age, currently 55 and rising to 57 from 6 April 2028, you can generally access the pension under the standard rules, which usually allow you to take up to 25% as a tax-free lump sum, with the rest taxed as income. If the credit is held in a defined benefit scheme, your options for taking a lump sum may be more restricted, so check the scheme rules.
Can the state pension be shared?
The basic and new state pension cannot be shared on divorce. However, any additional state pension built up before April 2016 (the protected payment, formerly SERPS or the State Second Pension) can be shared by a pension sharing order.
Frequently asked questions
What is a pension sharing order in simple terms?
It is a court order that transfers a set percentage of one person’s pension to the other on divorce, giving the recipient their own separate pension. It creates a clean break so neither person has a claim on the other’s pension afterwards.
How is a pension sharing order calculated?
The pension is valued (using the cash equivalent value, and often an expert actuarial report for defined benefit or more complex pensions), and a percentage is set to achieve a fair outcome. That can mean equalising the pension values or equalising retirement income, depending on the circumstances.
Who pays the pension sharing order fees?
It is decided in the settlement and recorded in the order. The pension scheme’s implementation charge can be paid by either person or split, and schemes often deduct it from a pension if it is not paid separately.
Can a pension sharing order be reversed?
Only in exceptional cases, such as a successful appeal or where the order is set aside for fraud or non-disclosure. Once implemented, it is normally final and cannot be varied.
Does a pension sharing order affect the state pension?
The basic and new state pension cannot be shared, but additional state pension built up before April 2016 can be. The provider for that element is the Department for Work and Pensions rather than a private scheme.
How long does a pension sharing order take to implement?
The provider has a statutory four-month implementation period from receiving the documents it needs, though the overall process, including the divorce and financial settlement, usually takes several months to a year.
A note on jurisdiction
This guide applies to England and Wales. Pension sharing also exists in Scotland and Northern Ireland, but the rules differ; in terms of calculation and implementation. If your divorce is proceeding outside England and Wales, take local advice.
Speak to our pension on divorce solicitors
Pensions are a part of a divorce settlement where it is easiest to lose out without realising, and the hardest to put right afterwards. Getting the valuation, the percentage, and the scheme details right is worth doing properly.
Our specialist family lawyers advise on pension sharing across England and Wales, working with trusted pension experts where needed. To take advantage of your free 30-minute consultation with our expert pension sharing lawyers, please call 0800 321 3832 or complete our quick online form.
Written by Michelle Brammer, Divorce and Family Law chartered legal executive at Woolley & Co, Solicitors. Woolley & Co is regulated by the Solicitors Regulation Authority (SRA number 563859). This article is for general information about the law in England and Wales and is not legal advice; for advice on your circumstances, please contact us. Last reviewed: 30th July 2026.
Michelle Brammer
Divorce and Family Lawyer, Melbourne, Derbyshire
