By Sital Somaiya, Founder and Solicitor. Last reviewed 14 October 2026.
Key points
- A pension sharing order transfers a percentage of one spouse’s pension to the other, who then has a pension of their own.
- The CETV figure can significantly understate the value of defined benefit and public sector pensions.
- A pension on divorce expert is often needed where defined benefit pensions are involved.
- Do not apply for the final order until the financial order is made if pensions are involved.
For many couples a pension is worth more than the house. It is also the asset most often overlooked in a divorce settlement, because it feels distant and its value is hard to understand. A pension sharing order is the main way the court divides it.
In this guide
- What a pension sharing order does
- The three ways to deal with a pension
- Getting the information
- Why the CETV can mislead
- Pensions built up before the marriage
- The state pension
- The final order timing trap
- Frequently asked questions
- Talk to us
What a pension sharing order does
A pension sharing order transfers a percentage of one spouse’s pension to the other. The receiving spouse gets a pension of their own, called a pension credit, either within the same scheme or transferred to a scheme of their choice. The split is permanent and clean: after it, the two pensions are entirely separate, and what happens to one has no effect on the other.
The three ways to deal with a pension
| Option | How it works | Main drawback |
|---|---|---|
| Pension sharing | A percentage of the pension is transferred now | Needs a court order, and schemes may charge fees |
| Offsetting | One spouse keeps the pension, the other gets more of another asset, often the house | Hard to compare pension value with cash or property |
| Pension attachment | Payments from the pension go to the ex-spouse when it is paid out | No clean break, and it ends if the pension holder dies |
Offsetting is popular because it lets one spouse keep the home, but it is easy to get wrong. £1 of pension is not worth the same as £1 of house equity, because pensions are taxed when drawn and cannot be accessed until later in life.
Getting the information
Each pension scheme provides a valuation called a cash equivalent transfer value, or CETV. Schemes can take several weeks, sometimes up to three months, to produce one, so request them early. Each of you should also get a state pension forecast.
Why the CETV can mislead
For defined contribution pensions, the CETV is usually a fair figure because it is the value of the pot. For defined benefit pensions, including public sector schemes such as the NHS, police, teachers, civil service and armed forces pensions, the CETV can significantly understate what the pension will actually pay out.
In these cases a pension on divorce expert, usually an actuary, can report on how the pensions should be shared to produce a fair result. The aim is often equal income in retirement rather than equal CETVs. Guidance from the Pension Advisory Group recommends an expert report in many cases involving defined benefit pensions.
Pensions built up before the marriage
Where much of a pension was built up before the marriage or after separation, it may be argued that part of it should be left out of the division. This is more likely to succeed where the overall assets exceed both spouses’ needs. In needs-based cases, the court can still share pre-marriage pension if fairness requires it.
The state pension
The new state pension, for people who reached state pension age on or after 6 April 2016, generally cannot be shared. Only a protected payment element from older entitlement can be. A state pension forecast tells you what each of you is on track to receive.
The final order timing trap
Do not apply for the final order until the financial order has been made, where pensions are involved. Until the final order you are still married and may be entitled to widow’s or widower’s benefits if your spouse dies. Those rights end on divorce.
A pension sharing order cannot take effect until the final order. After that, the scheme has four months to carry out the transfer once it has the order and the information it needs. Our guide to conditional orders explains the stages of the divorce itself.
An example
Karen, 52, is a nurse with an NHS pension. Her husband Steve, 54, has a private pension. The CETVs are similar, so equal sharing looks fair on paper. An actuary’s report shows that Karen’s defined benefit pension will produce a much higher income in retirement than Steve’s pot. To equalise retirement income, the court orders a share of Karen’s NHS pension to Steve, not the other way round.
This is an illustrative example, not a real case.
Frequently asked questions
Am I entitled to half my spouse’s pension?
Not automatically. Pensions built up during the marriage are usually shared, but the result depends on the whole settlement, the length of the marriage, and how much of the pension was built up before it.
Can we share a pension without going to court?
You can agree it without a contested hearing, but a pension sharing order must be made by the court. If you agree, the terms go into a consent order with a pension sharing annex, which the court usually approves on paper.
Do I lose my pension if I divorce?
Not necessarily. Whether your pension is shared depends on the overall settlement. Your spouse may receive a share, or you may keep it all and they receive more of another asset.
How long does a pension sharing order take?
The scheme has four months to implement the share once it receives the order, the final order and the information it needs. Getting to the order can take longer, especially if an actuary’s report is needed.
Can the new state pension be shared?
Generally no. Only a protected payment element from entitlement built up under the old system can be shared.
Sources
- Welfare Reform and Pensions Act 1999, Part IV, legislation.gov.uk
- Check your State Pension forecast, GOV.UK
- Divorce: money and property, GOV.UK
Talk to us
Signature Law advises on pensions and divorce, including working with pension actuaries where defined benefit or public sector pensions are involved. See also our guide to spousal maintenance, or speak to our divorce solicitors in Romford.
Request a callback, or call 01708 398 851.
