A financial remedy available to parties in divorce, nullity and dissolution proceedings (issued after 1 December 2000) whereby an existing shareable pension is split and divided between the parties creating a pension credit for the recipient party to invest in their own right.

This Practice Note explains what a pension sharing order is and sets out which pension rights can be shared and which cannot. It also sets out the key features of a pension sharing order including pension credits and pension debits, variation issues, tax consequences and the approach to overseas pensions. For practical guidance on pensions generally, see Practice Note: General principles—pensions in family proceedings. Pension sharing is the method by which rights in a (shareable) pension arrangement can be divided between the parties on divorce, nullity or dissolution. It is only available via a court order. The person with pension benefit rights (the member-party) loses a percentage of the cash equivalent (CE) (sometimes referred to as the cash equivalent of benefits where the pension is in payment) of the relevant benefit rights (the pension debit) upon the implementation of the pension sharing order. The non-member party receives a percentage of the CE transferred (the pension credit) and they gain pension entitlement in their own right. Once the order is implemented, the recipient of the

This flowchart sets out the steps to be taken from issuing an application to the making of a pension sharing order where the court makes a final order/decree of divorce, dissolution or nullity. To access detailed practical

This flowchart sets out the steps to be taken from the making of a pension sharing order where the court makes a final order/decree of divorce, dissolution or nullity to implementation of the pension sharing order. It considers key stages and requirements

The former term for pension sharing.

Law360: The funding surplus of defined benefit pension schemes among the top 100 companies in the UK has exceeded £55bn, Lane Clark & Peacock LLP (LCP) has announced, marking a shift in conversation from funding to 'delivering value'.

Law360: The total value of pension surpluses released under new reforms could be much lower than the £160 billion figure originally touted by the government, the Pensions Policy Institute (PPI) said on 27 May 2026.

Law360: The pensions deal market could be reshaped this year by changes to how companies are able to use surpluses from their savings plans, consultancy Mercer Ltd has said.

Law360: The defined benefit pension sector saw surpluses slip £28bn over the course of December 2023 due to falling yields on long-dated government bonds, a consultancy said 8 January 2024.

Law360: Changing how pensions are taxed in the UK could potentially unlock more than £100bn for domestic investment over the next five years, according to a recent analysis by Hymans Robertson LLP.

A regulated activity whereby an individual transfers deferred benefits from a final salary occupational pension scheme, or from a money-purchase occupational pension scheme, in favour of an individual pension contract

The Financial Conduct Authority (FCA) has published decisions against three individuals, and fined and banned a fourth, in relation to reckless pension transfer advice. Adrian Douglas, Liam Martin and Frank Oxberry have each referred their Decision Notices to the Upper Tribunal. Alec Cuthbert agreed to settle the FCA’s case against him and therefore has not made a reference to the Tribunal of the FCA’s decision to take action. The FCA considers the four were responsible for a pension transfer advice model that put at risk people’s guaranteed retirement benefits.