How to implement a Pension Sharing Order after divorce
Quick answer
Once a Pension Sharing Order is made, the pension scheme has to put it into effect. You may need to decide where the pension credit should go, how it should be invested, and how it fits with your wider financial plan.
Introduction
Getting a PODE report or agreeing a Pension Sharing Order isn’t really the end of the pension sharing process. In many cases, there is still a practical implementation stage.
This is where the pension share is processed by the scheme and the receiving party may need to make decisions about what happens to their pension credit. Those decisions can have long-term consequences, so this it’s at this point that specialist financial advice becomes important.
What does ‘implementing a pension share’ mean?
A Pension Sharing Order sets out how much of one person’s pension should be transferred to the other. The order is usually expressed as a percentage, not a fixed cash amount. Implementation is the process of putting that order into effect. In practice, this may involve:
The court order and pension sharing annex being sent to the pension scheme
The scheme checking the order and calculating the pension credit
The scheme setting up benefits for the receiving party or arranging a transfer
The receiving party making decisions about where the pension credit should go
The pension credit being invested or held in line with the chosen route
The exact process depends on the pension scheme and the type of pension involved.
Step 1: Make sure the order is complete and correctly served
The pension scheme will normally need the sealed Pension Sharing Order and the correct pension sharing annex before implementation can begin. Small errors can cause delays, especially if:
The scheme details are wrong
The pension sharing percentage is unclear
The annex is incomplete
The order has not been properly sealed or served
The scheme needs additional information before it can proceed
Your solicitor will usually deal with this stage if you have one.
Step 2: Understand the scheme’s options
Not every pension scheme works in the same way. Depending on the scheme, the receiving party may be offered:
An internal pension credit within the existing scheme
An external transfer to another pension arrangement
A choice between internal and external options
Limited options because of the scheme’s rules
This is one reason implementation can be more complicated than it first appears. The right route may depend on the scheme, the benefits being shared, your age, your retirement plans and your wider finances.
Step 3: Decide where the pension credit should go
If you receive a pension credit, you may need to decide whether it should stay within the original scheme or be transferred elsewhere, if a transfer is permitted. This decision can matter because it may affect:
The type of benefits you receive
Investment choice and risk
Charges
Flexibility at retirement
Tax planning
How the pension fits with your wider financial position
Some decisions may be difficult or impossible to reverse later, so it is worth taking them seriously.
Step 4: Choose an investment approach
If the pension credit is placed into a defined contribution arrangement, it will usually need to be invested. That means deciding things like:
How much investment risk is appropriate
When you may need to access the pension
Whether default funds are suitable
How this pension fits with any other pensions or savings you have
Whether your investment choices should change over time
Being placed into a default fund is not always wrong, but it should not happen simply because no one has made an active decision.
Why financial advice can be important
A PODE helps with the expert pension analysis needed for the divorce settlement. A financial adviser helps with personal financial decisions after that settlement.
Financial advice can be useful because implementation often involves questions such as:
What should I do with the pension credit?
Should I transfer it?
How should it be invested?
What level of risk is suitable for me?
How does this affect my retirement plan?
How do I avoid unnecessary delays or mistakes?
These are personal advice questions. They are not usually questions for the PODE.
Ready to explore Financial Advice?
If you’re at the stage of your divorce where you feel broader financial advice may be worth exploring, independent review sites such as VouchedFor are a good place to start. It’s really important to find a compatible adviser who shares your values and understands your needs. Many people end up working with the same financial adviser for years, so the quality of the connection and relationship is really important.
Our Founder, Kimberley Sare - Financial Adviser of the Year 2025 - leads our sister company ‘Guided Financial’ an independent divorce specialist supporting people with all aspects of their financial position, including how to best utilise their pension credits.
If you are a client of The PODE and have now received your PODE report she can help you make sense of your options for receiving, transferring and investing your pension credit and consider your broader financial position. If you’re not a PODE client you can seek her help at any stage of your divorce.
The bottom line
If you have received, or are about to receive, a pension credit, this may be one of the bigger financial decisions you make after divorce. Implementation can involve scheme rules, transfer decisions, investment choices, tax considerations and long-term retirement planning. Getting advice before you make implementation decisions can make a real difference to your future financial security.
