I’m getting divorced. Can I choose which pensions get shared?
Quick answer
Sometimes you can choose which pension is shared in a divorce, but only if the result is fair and practical. Some pensions cannot be shared directly, such as the State Pension and certain overseas pensions, but they should still be considered when working out the overall settlement.
Introduction
When people divorce, pensions are often among the biggest assets to divide. A question that comes up time and again is: Can I pick which pension gets shared?
The short answer is: sometimes yes, sometimes no. There is often some flexibility, but there are also limits set by the law, pension scheme rules, and the principle of fairness. And before you can decide which pension should be shared, you first need to know whether each pension can be shared at all.
Do all pensions have to be shared?
No. Not every pension has to be split.
If one of you has several pensions, it may be possible for only one of them to be shared. What matters is that all pensions are taken into account when working out what a fair settlement looks like.
Once the full picture is clear, it may be agreed that sharing just one pension achieves the right result. In other cases, a combination of pensions may need to be shared, or a different asset may be used to balance things out.
Which pensions can be shared?
Most workplace and personal pensions can usually be shared through a Pension Sharing Order (PSO). This is a formal order from the court telling the pension scheme to transfer a percentage of one person's pension to the other party.
Pensions that can usually be shared include:
Defined benefit pensions (final salary or career average schemes)
Defined contribution pensions, also known as money purchase pensions
Public sector pensions, such as NHS, teachers', civil service, armed forces etc
Personal pensions and SIPPs
That does not mean they are all equally simple to share. Some schemes are more complex, more expensive, or more restrictive than others.
Which pensions can’t be shared?
Some pensions cannot be shared directly, even though they may still matter when working out fairness overall.
Examples include:
State Pension: The basic State Pension and new State Pension cannot usually be split or shared directly through a Pension Sharing Order. However, differences in State Pension entitlement can still be very important, especially if one person has gaps in their record because of childcare, caring responsibilities or time out of work.
Certain overseas pensions: Some overseas pensions may be outside the reach of an English court order, unless they qualify under the relevant rules.
Some pensions already in payment: In rare cases, once benefits have been converted into income, they may be difficult or impossible to unwind and share in the usual way.
The key point is this: just because a pension cannot be shared directly does not mean it shouldn’t be taken into consideration.
Can you choose which pension to share?
Sometimes, yes.
If one pension cannot be shared, or would be impractical to share, another pension may be shared instead. For example, if one person has a valuable State Pension entitlement that cannot be split, the overall difference might be balanced by sharing more of a workplace or personal pension.
The same can apply where one pension is technically shareable but not the best candidate. A couple might agree to share a defined contribution pension because it can be transferred more cleanly, while leaving a more complex defined benefit scheme untouched. In another case, the defined benefit pension may be the better pension to share because it produces a fairer long-term retirement income.
The choice depends on the pensions, the numbers, the retirement needs of both parties, and what the pension schemes will actually allow.
What if one pension is easier or better to share?
Some pensions are easier or cheaper to share than others. Some carry valuable guarantees, death benefits, inflation protection, or special scheme rules that make them more important to understand before making a decision. Others may involve high fees, delays or restrictions that make them less suitable.
Choosing which pension to share is not just about convenience. It has to produce a fair and workable outcome for both parties.
How a PODE helps
A PODE looks at all the pensions in play, including pensions that can be shared, pensions that can’t be shared directly, and pensions that may be difficult or costly to divide. Their report can explain:
What each pension is really worth
Which pensions can and cannot be shared directly
What income each person may have in retirement
Whether sharing one pension is enough to achieve fairness
Whether a different pension, or a combination of pensions, should be used instead
Whether offsetting against property, savings or other assets is a better option
The aim is not just to divide a pension. It is to reach a fair, practical outcome that ensures both parties’ post-divorce needs are met.
The bottom line
You can sometimes choose which pension is shared, but not always. All pensions must be considered, and the final decision has to be fair, practical and compatible with the pension scheme rules. Some pensions, such as the State Pension, cannot usually be shared directly. But they still matter. In many cases, another pension is shared instead, or other assets are adjusted to reflect the overall pension position.
What to do next
The best way to understand which pension, or pensions, should be shared in your specific case is to get expert input early. Our free assessment takes just a few minutes and will tell you if you would benefit from expert input and gives you next steps.
