Pension arrangements when divorcing

Pension attachment order (formerly ‘ear-marking’)

If your divorce petition was issued after 1 July 1996 you may apply for a pension attachment order against your spouse's pension in appropriate circumstances. Whether such an order is suitable for you will depend on various factors on which you will need advice.

If you want a pension attachment order, it is important to remember that the pension will start when the pensioner retires and will finish when the pensioner dies.

A pension attachment order will lapse on remarriage of the person in whose favour they have been attached (ie the person who applied for it).

Sometimes it is possible for a dependant's pension to be paid to a divorced spouse after the pensioner dies. Much depends on the rules of the scheme. This would be a different arrangement from attachment.

Pensioners may need to give undertakings (ie written promises to the Court) with regard to commuting part of their pension and any Consent Order of the Court may order this. Commuting means taking less pension income in retirement in exchange for a lump sum on retirement.

Death in service benefits and/or return of pension fund may be paid if a pensioner dies before retirement. Sometimes it may be possible to make provision for a former spouse from these sources.

Pension sharing

Pension sharing is available in all cases which where a divorce petition was issued after 2 December 2000. Pension sharing makes it possible to divide pensions on divorce so that they start and stop when the recipient retires and dies, rather than the original pensioner. They do not lapse on remarriage and a pension share would become the property of the person receiving it.

The need for expert advice

Pensions are very complicated. It is highly likely that specialist financial advice would be needed as well as individual legal advice. Any proposed pension order has to be served on the pension Trustees of the scheme, who have a right to be heard by the Court on the issue.

This information is designed to be neutral and will be given to everyone to whom it is relevant. It is not designed to replace detailed legal advice tailored to your particular circumstances. It is intended to help you identify some options which may be open to you. It is not for reproduction and may not be used in any other context.