What is a Pension Sharing Order and how do I get one?
Quick answer
When you’re getting divorced, pension providers can’t divide a pension just because you both agree to it. A Pension Sharing Order, often called a PSO, must be approved or made by the court, then sent to the pension scheme to be officially implemented.
The PSO transfers a percentage of one person’s pension to the other person. It creates a separate entitlement for the person receiving the share, so that both parties have their own pension.
PSOs are most often used where one person has built up significantly greater pension benefits than the other and can be particularly relevant where there are complex or valuable workplace or public sector pension benefits, such as final salary, NHS, police, teachers’ or armed forces pensions.
What is a Pension Sharing Order?
A Pension Sharing Order is a formal court order used in divorce or dissolution proceedings to divide pension benefits between spouses or civil partners.
It tells a pension scheme to transfer a set percentage of one person’s pension rights to the other. The person whose pension is being shared receives a pension debit, which reduces their pension benefits. The person receiving the share receives a pension credit, which, when implemented, becomes a separate pension in their own name.
The Pension Sharing Order specifies the pension to be shared and the percentage to be transferred. There is an order for each pension if more than one needs to be shared. A PSO will also usually include a Pension Sharing Annex. This gives the pension provider the specific information it will require to officially share the pension.
A Pension Sharing Order may be made by agreement as part of a Financial Consent Order, or ordered by a judge if you cannot agree the financial terms of your divorce. Either way, the court must approve or make the order before the pension provider can do anything.
Read more about financial consent orders on the GOV.UK website
When is a Pension Sharing Order used?
A Pension Sharing Order tends to be considered when pensions form a significant part of the assets in a divorce and where one person has built up much more in a pension than the other.
That can happen because one person earned more, worked full-time for longer, had access to a better workplace pension, or built up benefits in a public sector scheme. The other person may have taken time out of work, worked part-time, cared for children, supported the household, or had less opportunity to build up their own pension.
A Pension Sharing Order might be most relevant where there are:
NHS, police, teachers’, armed forces or civil service pensions
Final salary or defined benefit pensions
Pensions already in payment
Several different pension schemes
Long marriages
Large gaps between each person’s pension provision
Parties close to retirement
It can be challenging to know which pensions to share or to arrive at an appropriate percentage to share, especially if you have a complex financial position or defined benefit pensions. Expert involvement from a Pension on Divorce expert (PODE) is often crucial, and in cases going to court, is frequently insisted upon by the judge.
Why Pension Sharing Orders matter
They matter because it reduces the risk of unfairness in retirement and potential challenge post-divorce.
When you’re going through divorce, it’s natural to focus on the things that feel immediate: the house, savings, debts, income and day-to-day living costs. Pensions can feel distant, complicated and intangible.
But if one person leaves the marriage with a large pension and the other does not, although invisible in the short term, it can cause significant inequality in retirement.
Even a modest difference can have a significant impact. If you have £100k less pension, your annual retirement income would be around £7,723 lower which means you either work for longer or accept a lower standard of retirement.
For the person whose pension is being shared, part of their pension is transferred away. That can feel really significant. But just like property, savings or other assets, pensions typically form part of the marital assets and it’s right that they be considered as part of any settlement.
In a recent case, Lin v Par [2025] EWFC 401, the court re-considered the wife’s lack of retirement provision, after she brought a financial claim more than 20 years after her divorce. Giving pensions proper consideration now and sharing them fairly is in the long-term interests of both parties.
Pension Sharing Order vs pension offsetting
A Pension Sharing Order is not the only way pensions can be dealt with during divorce.
The GOV.UK website explains that pension offsetting is an alternative way to deal with pensions following divorce or dissolution.
Offsetting is where the pension is not divided directly. Instead, one person keeps more of another asset, such as property, savings or investments, while the other person keeps more of their pension.
Offsetting can be useful, but always requires careful analysis.
Comparison of different types of asset is tricky. Take pensions and property. Pensions only become accessible at some defined point in the future, whereas property has a tangible value today. They’re taxed differently. They have different annual costs and respond differently to inflation.
It’s especially difficult to compare the value of assets like property, cash or investments to defined benefit, final salary and public sector pensions. They carry long-term income potential, survivor benefits, and scheme guarantees, which are highly valuable and difficult to quantify.
Click the button below to read more about the challenges of pension offsetting
Why CEVs can be misleading
To understand pensions on divorce, you will usually need a Cash Equivalent Value, known as a CEV. This is a formal valuation of the pension, provided by the pension scheme and is usually the starting point for financial disclosure.
A CEV is a useful start point to understand what pensions are worth, especially for defined contribution (DC) pensions where the CEV can be close to the actual pension value.
But defined benefit (DB), final salary and public sector pensions work differently. They may promise an income in retirement, often linked to salary, service and scheme rules. A CEV may not fully reflect the value of the benefits provided by a defined benefit pension. We’ve seen the difference between CEVs and a pension’s ‘market value’ differ by over £400k and two pensions with the same CEV could theoretically have wildly different ‘values’ due to the pension type and the different benefits that come with them.
Click the button below to read more about the important difference between defined contribution and defined benefit pensions
People are often tempted to add up the value of their pensions, as stated by their CEVs, and split them 50/50. Although this may feel instinctively equal, because different pension types carry different benefits and because the CEV can be misleading, what looks ‘equal’ on paper today does not always mean ‘fair’ long-term.
How are State Pensions treated in divorce?
State Pensions can’t be shared. But it’s important to consider them as part of what is fair. If one party has not accrued Full State Pension, while the other has, the overall income in retirement could be vastly different. The Pension Sharing Order might need to take this difference into account.
How do you get a Pension Sharing Order?
Here’s how the process typically works.
1. Start the divorce or dissolution process
A Pension Sharing Order can only take effect as part of divorce or dissolution proceedings.
2. Share your financial information
Both sides need to disclose their finances, including property, savings, income, debts and pensions. So, for each pension, you will usually need to request a CEV from the pension provider. This should be a formal figure from the scheme, not a screenshot from an online pension account.
3. Decide whether expert pension advice is needed
It’s always worth discussing your situation with a pension expert if pensions form part of your settlement. But if your pensions are simple and relatively small, you may not need a full pension sharing report (a PODE report).
A PODE report will be most beneficial if:
One or both of you have a Defined Benefit (final salary) pension
There are multiple pensions across different providers
Pension values are significantly different between you
There is a significant age gap between you
You are considering pension offsetting
You need help working out what is fair
If your case is going to court, a PODE report may be insisted upon by the judge, or your solicitor may advise you to obtain one.
A PODE report will provide specialist pension analysis so that you, your solicitor if you have one, and the court if relevant, can make fully informed decisions about your pensions as part of your wider settlement.
Unsure whether you need a PODE report. Take our free online assessment.
4. Agree the settlement, or ask the court to decide
Once financial disclosure is complete, you and your former spouse or civil partner may be able to agree the financial settlement through direct discussions, mediation, solicitor negotiation or another process.
If you agree, the pension share can be included in a Financial Consent Order and sent to the court for approval.
If you cannot agree, the court may need to decide what should happen. The judge will look at the financial evidence, including pension information and any expert report, before deciding whether a Pension Sharing Order should be made.
5. Draft and approve the order
The Pension Sharing Order and the Pension Sharing Annex must identify the pension scheme, the person whose pension is being shared, the person receiving the pension credit, and the percentage to be transferred. If the wording is wrong, unclear or incomplete, the pension provider may reject it or ask for changes. That can cause delay. Once the court approves or makes the order, it becomes legally binding and difficult to change.
6. Send it to the pension provider
After approval, the order needs to be sent to the pension provider with the required documents, scheme forms and implementation fee.
The pension share does not usually happen straight away. The pension provider needs the correct documents and fees before it can begin. It usually has up to four months to take the actions stated by the PSO and to transfer the pension.
7. Decide what to do with your pension credit
If you are the person whose pension has been shared, you will not usually need to take any further action.
If you are receiving a share of a pension, you will receive a pension credit once the Pension Sharing Order has been implemented. This becomes a separate pension entitlement in your own name.
You may then need to decide where that pension credit should be held.
Internal transfer: your pension credit remains within the existing pension scheme, but is held separately in your own name. Not every scheme offers this option.
External transfer: your pension credit is transferred out of the existing scheme and into a different pension arrangement in your own name. You will need to choose an appropriate pension provider and decide how the money should be invested.
The right option will depend on factors such as your age, retirement plans, attitude to investment risk, the flexibility you need, charges and any valuable benefits or guarantees that could be lost by transferring.
Click the button below to read our practical guide ‘How to Implement a Pension Sharing Order & the value of financial advice’ - which talks through what to do with your pension credit.
How much does a Pension Sharing Order cost?
The cost of a Pension Sharing Order can vary. There is not one single fee. Instead, there are several possible related costs.
Legal and court costs
If you use a solicitor, there may be costs for advice, negotiation and drafting the order. Legal advice can be particularly important if the pension is valuable, the broader settlement is complicated, or you are unsure whether the proposed split is fair.
There may also be court fees for submitting a financial consent order or dealing with financial remedy proceedings. In many cases, each person pays their own legal fees. But this can vary depending on the circumstances and any court orders made.
PODE fees
If a Pensions on Divorce Expert (PODE) is instructed, there will be a cost for the expert report.
PODEs charge in different ways. Some charge a fixed fee to help you manage and predict costs. Others charge per calculation so costs can mount.
PODE costs are often shared because the expert is usually instructed jointly and acts impartially for both parties. However, responsibility for the cost should be agreed in advance or directed by the court.
You can see our costs here.
Pension scheme implementation fees
Most pension providers charge a fee to implement a Pension Sharing Order.
Implementation fees generally range from £100 to £500, but others can be higher. Complex pensions, public sector schemes, or pensions already in payment may cost more. In some cases, the fee can be a few thousand pounds.
Who pays the implementation fee can vary. Sometimes it is paid by one person. Sometimes it is split. The financial order should make this clear.
How a PODE helps with Pension Sharing Orders
A PODE enables you to make informed decisions about your pensions during divorce and their detailed analysis can play a crucial role in guiding the Pension Sharing Order.
An effective PODE will:
Establish whether the CEV reflects the real value of your pensions
Review defined contribution, defined benefit and public sector pensions
Analyse pension sharing and offsetting options
Consider pension capital and pension income outcomes
Help you understand what the sharing options will mean for your retirement
There is common ground, but no national standard for PODEs. Some only accept solicitor-led cases, not all follow Pension Advisory Group (PAG) guidelines, and the length and clarity of their reports can vary considerably.
Getting one which suits you and your circumstances is important.
Click the link below to read our handy article ‘What Should I Look for in a PODE? A Practical Guide’
Common mistakes when sharing pensions
Sharing pensions on divorce can be technical. Common mistakes include:
Assuming the CEV tells the full story
Assuming a 50/50 pension split is automatically fair
Offsetting without proper advice
Leaving pensions out of financial disclosure
Relying on screenshots instead of formal pension information
Failing to check the scheme’s implementation requirements and fees
Agreeing terms before taking appropriate advice
The bottom line
A Pension Sharing Order is not just another piece of paperwork. The pension part of your settlement could shape your financial future for years, even decades, after divorce. If pensions are misunderstood, undervalued or traded away without proper advice, the consequences may not show up immediately but they can be profound for your retirement income and your future financial security.
This is why input from a PODE can be so helpful. Getting expert advice, even if you don’t need a PODE report, can help you avoid mistakes and will enable you to make these crucial decisions with confidence.
Do you need input from a PODE?
Not sure whether you need a PODE report? Take our free assessment.
It will help clarify:
Whether you need a PODE report
If you do, what type of report is right for your circumstances and what the benefits are
What your next step should be
If your answers suggest that expert input could help, you’ll also be offered a free 10-minute clarity call with one of our pension experts - where you can explain your situation and find out if there is any benefit in having further expert input.
FAQ’s
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The pension split can either be agreed between you or decided by the court if you cannot agree.
If you agree, the pension share will usually be included in a Financial Consent Order and sent to the court for approval. If you cannot agree, the court can decide what split is fair after considering the financial evidence, including pension values and any expert report.
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No. It is possible to apply without a solicitor if you’re representing yourself. However, the legal drafting of the order needs to be precise, and pensions are complex. Some people use a solicitor for this stage even if they have handled other parts of the divorce themselves.
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Yes. A Pension Sharing Order is legally binding once it has been approved or made by the court and has taken effect. The pension provider cannot divide a pension based only on an informal agreement. It needs a valid court order and the required supporting documents before it can implement the pension share.
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In almost all cases, no. Once a Pension Sharing Order has been implemented by the pension scheme, it's permanent. This is one of the reasons it's so important to make sure pensions have been properly valued before agreeing to a split.
A caveat to that is where one of you has not fully disclosed your finances to the other. In this case, the whole agreement can be set aside by the judge.
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Several professionals and organisations may be involved, but each has a different job:
Your solicitor or legal adviser (if you have one) makes sure the agreement and Pension Sharing Order are properly drafted and documented
A pension on divorce expert (PODE) analyses the pensions and calculates the implications of different sharing or offsetting options
The court decides whether the proposed financial settlement is appropriate and approves or makes the order
The pension scheme implements the Pension Sharing Order once it has received the correct documents and any required fee
A financial adviser can advise you on a suitable pension arrangement for receiving your pension credit and consider how it fits into your broader financial plan.
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A Pension Sharing Order divides pension benefits directly. A percentage of one person’s pension is transferred to the other person, giving the recipient their own separate pension entitlement.
Pension offsetting works differently. Instead of dividing the pension, one person keeps more of another asset, such as property, while the other keeps more of their pension.
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Once a valid Pension Sharing Order has been approved by the court and the pension provider has received all required documents, information and fees, the pension scheme usually has up to four months to implement it.
The full process can take longer because you may first need to gather pension information, exchange financial disclosure, get advice, negotiate the settlement, draft the order and obtain court approval.
