Can a Pension Sharing Order Be Cancelled?
May 2025
A Pension Sharing Order is a legally binding document issued by the court as part of a financial settlement in divorce or civil partnership dissolution proceedings. It provides for a percentage of one spouse’s pension to be transferred to the other. Once made final, it is enforceable, and both the parties and the pension provider are expected to comply with its terms. However, there are situations where one or both parties may wish to cancel or amend the order made.
This summary provides general information and does not constitute legal advice on any individual circumstances.
A Pension Sharing Order is legally binding from the point at which it is made, however it does not take effect until the divorce or dissolution is finalised through the granting of the final order, and the pension provider has received all the necessary paperwork, including the sealed court order and confirmation of the divorce or dissolution. Until that point, the order stands, but it cannot yet be enforced.
This timing is important because it creates a brief window between the court approving the pension order and the divorce or dissolution being legally finalised. During this period, and in very specific circumstances, a Pension Sharing Order can be amended by way of a variation application. However, once the final order is granted and the documents are submitted to the pension provider, the Pension Sharing Order becomes binding and cannot be varied. Any changes would therefore have to be sought by way of an application to set it aside (if the court hasn’t made an error), or appeal it (if the court has made an error).
Can the Order Be Cancelled Before It Takes Effect?
While it is possible to vary or discharge (that is, cancel) a Pension Sharing Order before it takes effect, it is important to note that this is only possible with court approval, and successful variation applications are rare in practice. The court promotes the finality of orders that were intended to be final.
An application may be made jointly by the parties, if they wish to agree a new financial settlement, or by one party alone if, for example, there has been a significant change in circumstances. Until the final order is issued in the divorce, the court retains discretion to revisit and amend financial orders, including pension sharing provisions. The court’s decision will take into account various factors such as the change in financial circumstances, the impact of the variation sought, and whether it is just to uphold the original order made.
Can the Order Be Cancelled After It Takes Effect?
Once the final order in the divorce or dissolution has been made and the Pension Sharing Order has been sent to the provider, it can no longer be varied or discharged. From that stage, it is a binding legal obligation and must be carried out unless the court grants an appeal or set aside application.
A party may wish to apply for a set aside if they believe the original order was made following material non-disclosure, or there has been a significant change in their circumstances. They may wish to appeal the order if they believe that it was made on the basis of a fundamental legal error. Both options can be legally complex, however, and costly to resolve. It is crucial, therefore, to seek legal and financial advice before agreeing to a financial settlement that includes pension division.
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