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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Latest Pensions News

Pensions Schemes Bill makes progress at Lords Grand Committee Stage despite strong reservations on LGPS reforms

The House of Lords Grand Committee (Grand Committee) opened its detailed scrutiny of the Pension Schemes Bill on 12 January 2026. Day 1 of the Grand Committee’s examination began on Chapter 1 of the Bill on the Local Government Pension Scheme (LGPS) and in particular Clauses 1 (Asset pool companies) and 2 (Asset management). Ultimately, all amendments debated on 12 January were withdrawn, and Clauses 1 and 2 were agreed without change. However, the debate raised significant cross-party concern about the breadth of ministerial powers, the heavy reliance on delegated legislation, the protection of fiduciary duty and the extent of ministerial influence over pension investment. On 14 January 2026, the Grand Committee continued its focus on the provisions of Chapter 1 of the Pension Schemes Bill when it agreed Clauses 6 (Mergers of funds), 7 (Amendments of 2013 Act relating to scheme regulations) and 8 (Interpretation of Chapter 1). Again, agreement was reached despite extensive debate highlighting concerns over compulsory mergers, funding positions, contribution prudence and employer affordability, surplus management, transparency, and the impact of local government reorganisation. The government peers maintained that existing statutory, actuarial and governance frameworks are sufficient and that further changes should be considered through consultation rather than primary legislation. The Grand Committee is currently scheduled to sit again on 19, 22 and 26 January 2026 when further detailed examination of the Pension Schemes Bill will continue.

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