How to split pensions in a divorce or dissolution

You do not have to split or share your pensions when you separate. You also do not have an automatic right to claim some of your ex-partner’s pension.

But your pensions are often worth more than you realise, so should be added to the calculations when deciding how best to split everything.

You’ll normally need to decide how your pensions are split between you – they do not always need to be shared equally. You could consider using a mediator to help you decide. 

If you can agree, you’ll usually need a court to approve your agreement to make it legally binding – unless you live in Scotland and choose a pension sharing order.

If you’re unable to agree, you can ask the court to decide on a fair split for you.

Your pension providers then have up to four months to action any changes to your pension.

Many feel guilty for claiming some of their ex-partner’s pension, but it’s a joint asset like anything else. 

You might not have paid directly into their pension, but you likely contributed in other ways.

For example, you might have spent more time caring for your family or home while your partner continued working.

To find out how much your pensions are worth, ask each pension provider for a cash equivalent transfer value (CETV) for divorce or dissolution purposes. 

If you live in Scotland, your provider will need to know the length of your marriage or civil partnership to calculate your CETV. For example, if you’ve had your pension for 10 years and were married or in a civil partnership for five years, only half the value will usually count. 

It can take up to three months to receive the CETV and it will be valid in a Court for up to one year after it’s issued. You might need to pay a fee for a CETV if:

• you ask your pension provider for more than one in a 12 month period  

• the pension is already paying out. 

For a rough idea of your pension values while you’re waiting, you can: 

• log in to your pension provider’s online account

• check recent pension statements. 

To help make sure your pensions are valued fairly, consider paying for a pension on divorce expert (PODE) to create a detailed pension report for you.

Your State Pension usually cannot be shared between you, unless you reached your State Pension ageOpens in a new window before 6 April 2016. 

In this case, you might have to consider splitting any Additional State Pension or protected payments. You can request a State Pension valuation for divorce or dissolutionOpens in a new window on GOV.UK.

If either of you live abroad and have a UK pension, any agreement still needs to go through the UK courts. 

If you have a pension based outside the UK, it cannot be shared under a UK court order but can still be counted to calculate a fair split of your assets.

There are three ways to split your pensions. You can:

• transfer a portion of one person’s pension to another, called pension sharing

• ask the pension provider to pay a share of the future pension income to each of you, called pension attachment or earmarking

• keep the full pension and let the other partner take other assets of similar value,  called pension offsetting. 

You can usually choose to use one or more of these options. 

Here are the key details for each one. You can also book a free Pensions and divorce or dissolution appointment to get impartial guidance on your options from one of our pension specialists. 

Pension sharing divides the combined value of your pensions between you, based on an agreed percentage. In Scotland, you’ll decide on a fixed amount.  

For example, you might agree to take half each or for one of you to get a higher amount.

As you each own a separate part of the pension, you get a clean break from each other. 

The agreed portion is called a pension credit and is moved from one person’s name to the other for a fee. This fee typically ranges from £0 to £4,250 – depending on the type of pension you have and whether you:

• leave it with the same pension provider – if their rules allow it

• transfer it to a new provider.

For more information, see Pensions UK’s suggested range of chargesOpens in a new window

If you receive a pension credit, you can usually choose to take up to 25% as a tax-free lump sum, unless:

• the pension has already started paying an income

• 25% has already been taken as a tax-free lump sum

• the total amount of tax-free cash you’ve taken from all your pensions is higher than the lump sum allowance (LSA) – £268,275 for most.

A pension attachment order or earmarking: 

• lets you keep your own pension(s) where they are 

• adds a condition that your ex-partner will get an agreed share when it starts to pay out.  

For example, you might agree to give your ex-partner half of your pension income when you decide to take it – or give them a higher or lower share.  

In England, Wales and Northern Ireland, you can decide which payments the attachment order covers. For example: 

• any tax-free lump sums you take 

• payments made if you die, called death benefits 

• pension benefits built up after your divorce or dissolution.  

In Scotland, attachment orders can only cover lump sum payments and are called ‘pension lump sum orders’.   

You’ll usually pay a fee to apply an attachment order, but this is often lower than a pension sharing order. 

You’ll normally pay Income Tax on both shares of the pension, so your ex-partner will receive their part tax-free. This means you might need to change the way you split the pension so you each receive the amount you’re expecting.  

The attachment order only starts when money is taken from the pension, which is usually the decision of the person whose name it’s still in. If there’s an age gap between you and your ex-partner, this can let them receive money before reaching 55 – the normal minimum pension age (rising to 57 from April 2028). 

But there’s no guarantee any money will be paid out under an attachment order. This is because the attachment order:

• will typically end if:
  • the ex-partner marries someone else
  • either partner dies, unless the order includes death benefits
• can be changed if the ex-partner moves in with someone else.  

If you're the ex-partner, you cannot decide how and when the pension will pay out. For example, a pension might be taken as multiple lump sums when needed, rather than regular and guaranteed income.   

Pension offsetting lets you:

• keep your pensions as they are

• divide the other things you own differently, so you can agree a fair share overall.

For example, you might agree to keep your pension and your ex-partner gets the home if they’re a similar value. If your pension is worth more than the home, you might agree for your ex-partner to get a higher share of any other savings or assets you have.  

But it’s not easy to calculate how your pensions compare to other things you own. You might have to wait years to access your pension and then pay Income Tax on the money you receive – which reduces how much you’ll get.

Pension providers might also use different calculations to value your pensions, which makes true comparisons even more complicated.

There are two ways to agree how to split your pensions during a divorce or dissolution:

• agree between you, with or without legal advice or mediation 

• ask the court to decide for you.

It’s usually cheaper and quicker to agree between you, if you’re able to and it’s safe to do so.  

Either way, you’ll both need to share the details of all your finances, including the value of any pensions.

If you’re considering a pension sharing or pension attachment order, you can complete the Pension inquiry formOpens in a new window on GOV.UK and send it to your pension providers to get the information you need.  

Always consider how your decisions will affect you now and in the future. For example, if you agree to keep your home and your ex-partner keeps their pension, make sure you'll have enough time to build up your own retirement savings before you’d like to retire.

If you’re not sure about anything, consider paying for legal advice or mediation to help you come to a fair agreement.

As valuing and splitting pensions can be complicated, consider paying for:

• legal advice from a solicitor

• financial advice from a financial adviser.

This will help make sure you both understand your rights, options and if you’re both getting a fair deal.

A solicitor can also ask a pensions on divorce expert (PODE) to examine all your pensions and recommend the best way to split them. 

For help finding a solicitor and financial adviser, see our guides about:

• legal advice on divorce or dissolution

• choosing a financial adviser. 

A mediator can help you both work through the decisions you need to make. They cannot give advice or take sides.

A mediator is usually much cheaper than paying for legal advice and often works best if you still trust each other to be open and honest.

For help finding a mediator, see our guide about your options for legal advice on divorce or dissolution. 

The steps you need to follow depend on whether you’ve been able to agree between you or if you need to ask the courts to decide for you.

If you’ve reached an agreement with your ex-partner in England, Wales or Northern Ireland, a court needs to approve it before it’s legally binding. Without this, your agreement can usually not be enforced if either of you choose not to follow it.

In Scotland, a court needs to approve an attachment order (called a pension lump sum order) but a pension sharing order can often be finalised by adding a written copyOpens in a new window to the Register of Deeds. This is called a qualifying agreement. 

If you’ve agreed to use a pension sharing or attachment order, first check each pension provider is happy with your draft. For attachment orders, the draft must be agreed in principle before you can continue.    

You’ll then need to send your written agreement to the courts, along with information about all your finances and the court fee. You usually need to pay a solicitor to help you do this. 

A judge will then review your agreement and either:

• approve it if they think it’s fair
• ask you to change something.

If you cannot agree with your ex-partner, or it’s not safe for you to deal with them directly, you can ask the court to decide for you. This is often known as defending the petition.

The court will usually review all your finances and tell you how you should split them, based on what they believe is fair. 

This might include the court asking a pensions on divorce expert (PODE) to value all your pensions.

After the courts have made your agreement legally binding, you should be told the date the final pension sharing or attachment orders will start from. This is usually after the full divorce or dissolution has been granted.

You can then contact your pension providers and ask them to make the changes. In Scotland, you must send all the documents your pension provider needs within two months, or you might have to start the process again.

After you’ve sent all the information needed and paid the fees, your pension provider has four months to action everything.

If you’re receiving a share of your ex-partner’s pension and need to find a new scheme to transfer it to, see our guide How to start your own pension. 

Changes to your pensions might mean you’ll have less retirement savings than you had planned.  

It’s a good idea to check how much you’re now on track to get and if you can afford to save more. For more information, see our guides: 

• Build up your retirement savings after divorce or dissolution
• Ways to boost your pension.

An expression of wish form tells your pension provider who you’d like to inherit your pension or death benefits. It’s a good idea to regularly review this, especially after life changes like a divorce or dissolution. 

To check who is currently listed and to make changes, contact your pension provider.

If you have a will, it’s also worth making sure it’s updated.