Pension orders in divorce

pension sharing orders

A pension sharing order transfers a lump sum of one party’s pension to the other party. This will be awarded to them as a ‘pension credit’ which is then transferred into their own separate pension. As such, each party will have their own separate pension from then on and will not benefit from each other’s post-divorce pension contributions. 

Pension attachment orders

In contrast, a pension attachment order does not split the pension into two separate pensions. Once the portion of the pension to be provided to the other party is agreed, the pension provider will be notified, and they will pay this directly to the other party when the pension member retires.  

This order will then end upon the death of one of the parties, or the re-marriage of the party receiving the pension attachment order payments, unless the order specifies otherwise. 

In this sense, it may be helpful to think of a pension attachment order as being similar to spousal maintenance.  

Given that a pension attachment order does not achieve a clean break between the parties, it is uncommon for the court to make it instead of a pension sharing order. As well as failing to make a clean break, its rarity is also due to other cons. For example, the payments will stop upon the paying party’s death, and if they die before retiring, the other party will not receive any payment.

If you are concerned about your entitlement to your spouse’s pension, or your spouse’s entitlement to your own, contact Vardags today for a free consultation with one of our specialist divorce solicitors.   

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