Pension Sharing Order After Final Order in Divorce
May 2025
When a marriage ends, dividing the financial assets fairly is a key part of the divorce process, and pensions often represent a valuable proportion of these. A Pension Sharing Order is a legal tool that allows a pension to be divided between spouses. However, there is often confusion about whether such an order can be made after the Final Order in the divorce has been granted.
This summary provides general information and does not constitute legal advice on any individual circumstances.
What are Pension Sharing Orders?
A Pension Sharing Order is a court order that enables a percentage of one spouse’s pension to be transferred to the other. This order must be made by the Family Court and is usually included as part of the overall financial settlement within divorce proceedings. Once the order takes effect, the receiving party either gains a separate pension pot in their own name or receives a credit to their existing pension arrangement, depending on the specific pension scheme involved. The order will specify the percentage of the pension to be shared and how it is to be divided.
This method is often preferred because it provides a clean financial break, giving both parties more clarity and independence moving forward. It ensures that both individuals will have their own pension arrangements, reducing the need for ongoing financial ties between them. Additionally, pension sharing can be beneficial if one spouse has a significantly larger pension than the other, as it allows for an equitable division of retirement assets. The court will take into account various factors, including the length of the marriage, the value of the pensions, and each party’s future financial needs, to ensure the division is fair.
Why Timing Matters
While an application for a new Pension Sharing Order can still be made after the Final Order is granted, an existing Pension Sharing Order cannot be varied after this time, and a second application cannot be made in respect of a pension already subject to a Pension Sharing Order. This is because an existing Pension Sharing Order will have taken effect on the Final Order being granted, and the recipient’s entitlement to that pension will have ceased.
Ideally, however, all financial matters, including pensions, should be resolved before applying for the Final Order. Obtaining the Final Order without sorting out financial arrangements can leave individuals vulnerable, especially if significant assets like pensions are involved. Complications could involve if the transferring party should pass away or if the transfer value of the pension were to change significantly in the intervening period between the Final Order being made and the Pension Sharing Order taking effect. There may also be unexpected delays in the pension provider making the transfer.
In many cases, solicitors will advise delaying the application for the Final Order in the divorce until a financial order has been approved by the court to avoid this situation. That way, the pension sharing can be properly included and implemented as part of the overall financial settlement.
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