Pensions and divorce

In proceedings for divorce, nullity, judicial separation or dissolution of a civil partnership, the court has the power to redistribute the benefits derived from pension resources between the parties. Pension sharing is only available where the court will make a final decree, ie the court cannot make a pension sharing order in judicial separation proceedings. Pension rights often form the second largest asset upon marriage or civil partnership breakdown, after the family home.

See Practice Notes: General principles—pensions in family proceedings, Pensions and judicial separation and Pension rights of spouses and civil partners on member’s death.

The following Precedent Letters may be sent by practitioners to their clients: Financial applications to the court—client guide and Financial disclosure and Form E—client guide.

Pension sharing

Pension sharing is the method by which an existing (shareable) pension arrangement is split and divided between the parties following divorce, nullity or dissolution proceedings. It is not a financial provision or property adjustment order but a separate species of order. Pension sharing introduces the concept of pension credits and pension debits. The person with pension rights loses a percentage of their

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DWP to evaluate pension scheme climate disclosure regime as part of government’s modernisation of climate disclosure and transition planning in UK financial markets

As part of its efforts to modernise the UK’s sustainability reporting framework, the government has introduced three consultations intended to “unlock billions in clean energy investment”. In doing so, the government is consulting on how to implement its manifesto commitment to mandate UK-regulated financial institutions (including banks, asset managers, pension funds and insurers),  as well as FTSE 100 companies,  to develop and implement credible transition plans that align with the 1.5C goal of the Paris Agreement. The government sees transition planning as a vital part of its commitment to secure the UK’s position as the green finance capital of the world. Notably, one consultation from the Department for Energy Security and Net Zero, seeks views on how the government should implement this commitment by ensuring an orderly transition aligned with global climate goals, aiming to enhance transparency to facilitate efficient capital allocation, enabling companies to seize opportunities from the global net zero transition, and bolstering the growth and international competitiveness of the UK’s financial services industry.  In particular, the consultation from the Department for Energy Security and Net Zero indicates that during 2025, the Department for Work and Pensions (DWP) will conduct a review of the Occupational Pension Schemes (Climate Change, Governance and Reporting) Regulations 2021, SI 2021/839, utilising evidence provided by the Pensions Regulator (TPR). The DWP regards this review as a logical starting point to assess the effects of the current climate disclosure regime (put in place following the recommendations from the Taskforce on Climate-Related Financial Disclosures (TCFD)) and to consider future steps for climate change reporting. In parallel with the TCFD review, the DWP has tasked TPR with evaluating the feasibility of transition plans within pension schemes. Accordingly, TPR is organising an industry working group, including key stakeholders and major occupational pension schemes, and is set to deliver its findings to the DWP later in 2025.

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