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

Upper Tribunal confirms HMRC’s power to issue assessments under TMA 1970 regarding pension scheme unauthorised payments (Trachtenberg v Revenue and Customs Commissioners)

Pensions analysis: Mr Trachtenburg (‘A’) appealed against the decision of the FTT, upholding HMRC’s assessments under section 29 of the Taxes Management Act 1970 (TMA 1970), charging him to income tax under sections 208 and 209 of the Finance Act 2004 (FA 2004). The sole issue was whether HMRC have power to issue assessments under TMA 1970, s 29. A contended: First, that the pension provisions in FA 2004 were comprehensive, the TMA 1970 does not enable HMRC to assess in the in the absence of any express application by FA 2004, s 255 or regulations issued under it, put beyond doubt by section 255(3)(b), which states that regulations under section 255 ‘may…provide for the application of any provision of the Tax Acts (with or without modification)’, unnecessary words otherwise; and Parliament had left it to HMRC to implement the necessary regulations, but they had failed to do so. Second, that TMA 1970, s 29 did not apply to income tax under FA 2004, ss 208 and 209, which did not charge income tax ‘for a year of assessment’. The Upper Tribunal (UT) rejected these arguments and dismissed the appeal. Written by Rebecca Murray, barrister at Devereux Chambers.

Scope of new Pensions Commission faces early criticism from industry

Law360: The government launched a once-in-a-generation review of retirement savings on 21 July 2025, but experts warned that the new Pensions Commission is a missed opportunity to take a no-holds-barred approach to tackle the savings crisis.

Pensions Adequacy Review: Pensions Commission formally relaunched to address retirement crisis, coinciding with launch of Third State Pension Age Review

The government has relaunched a new Pensions Commission on 21 July 2025, headed by Baroness Jeannie Drake, Sir Ian Cheshire, and Professor Nick Pearce. The Pensions Commission is set to examine the barriers preventing adequate retirement savings and resulting in poor retirement outcomes by assessing the overall pension system, while building on the findings of the Pensions Investment Review published in May 2025 and the measures outlined in the Pension Schemes Bill that aim to boost investment and stimulate economic growth. The initiative also builds on the success of the original Pensions Commission (2002–2006), which led to the introduction of Auto-Enrolment and improved pension saving participation from 55% in 2012 to 88% in 2025.

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A coalition of UK pension schemes managing approximately £150bn in assets has launched the Governance for Growth Investor Campaign (GGIC), with Railpen publishing details of the initiative. The campaign, which represents 11 million members and with over £60bn invested in the UK, aims to promote the role of good corporate governance in supporting sustainable economic growth and delivering long-term value for savers. It supports the UK government’s Financial Services Growth and Competitiveness Strategy and welcomes the establishment of a Listings Taskforce to help businesses list and grow in the UK. The GGIC outlines four policy priorities: securing pension schemes a formal role in shaping capital markets and governance policy; bridging the divide between private and public markets; promoting UK governance standards internationally; and reinforcing shareholder rights.