A pension sharing order is usually made when the assets and income of the parties are not sufficient to provide an adequate financial settlement for both parties.
The PSO instructs the pension providers of a fund to transfer a percentage of the transfer value (anything up to 100%) to the party who is to benefit from the order.
Any order to share pensions must offer a percentage of the pension, not a fixed amount as the value can fluctuate.
Not all pensions can be shared – View our table below to find out which pensions can and cannot be shared using this mechanism.
The fees to share pensions can be excessive – High-street solicitors will often charge £2500+ to help you implement this order. Read about our service for £649 fixed fee.
The court will expect the fund member to request a valuation of the pension benefits, known as a Cash Equivalent Transfer Value (CETV), at the date of petitioning for divorce. If a CETV has been provided within the previous 12 months this will be accepted.
The provider of the pension scheme must supply the CETV within 3 months.
The pension provider has 3 weeks from receipt of the order to appeal.
Pension scheme providers can pass on the costs of implementing pension-sharing orders to the divorcing couple.
Divorce lawyers are not regulated, qualified, or insured to give financial