Is it true that some pensions can't be shared?
When couples divorce, pensions are often the biggest asset after the family home. But not all pensions are treated equally and yes, some pensions can’t be shared at all. That can feel unfair, so let’s break down why this happens and what it means in practice.
The Law on Sharing Pensions
In England & Wales, pensions can only be shared through a Pension Sharing Order (PSO) made by the family court. This is a formal legal mechanism that tells the pension scheme to carve out a percentage for the ex-spouse.
But not every type of pension is shareable.
Pensions That Can Be Shared
Most workplace and personal pensions can be shared, including:
Defined benefit (final salary or career average) schemes
Defined contribution (money purchase) schemes
Public sector pensions (NHS, teachers, civil service, armed forces, local government)
Personal pensions and SIPPs
Pensions That Cannot Be Shared
Some pensions are excluded from sharing by law. Examples include:
State Pension (basic or new State Pension): These can’t be split or shared directly. However, differences in State Pension entitlement can still be very important when working out fairness overall. (For example, one spouse may have gaps in their record due to childcare, while the other has a full record)
Certain overseas pensions: Unless they qualify as a “recognised” scheme under UK rules, they may be outside the reach of an English court order
Some pensions in payment (in rare cases): Once benefits have been converted into income, they sometimes can’t be unwound and shared, although this is increasingly rare
Still Counted in the Settlement
Even if a pension itself can’t be shared, it is still taken into account when the overall pension sharing is worked out. For example, where one spouse has a valuable State Pension but it cannot be split, this could be balanced by ordering a share of another pension instead. This way, the non-pensioned spouse does not lose out, and fairness is still achieved across the whole asset picture.
What Happens Instead?
If a pension can’t be shared directly, there are other options:
Offsetting: The value of the non-shareable pension is recognised, and the other spouse receives more of another asset (like property or savings) to balance things out.
Sharing a different pension: Where one scheme can’t be touched, another pension belonging to the same spouse may be shared instead, to reflect the overall value.
Attachment Orders (rare): The court can order that part of the income from a pension in payment is redirected to an ex-spouse. This is not the same as sharing and ends if the pension holder dies.
The Bottom Line
It’s true: not all pensions can be shared. The State Pension in particular cannot normally be divided under a Pension Sharing Order — though it’s still part of the bigger fairness picture. In many cases, another pension is shared instead, or assets are rebalanced to achieve a fair outcome.
The important thing is this: just because a pension can’t be shared directly doesn’t mean it should be ignored. A PODE will help make sure every pension - shareable or not - is taken into account so the settlement is fair.