What is a Pension Sharing Order and how do I get one?
Quick answer:
A Pension Sharing Order (PSO) is a court order that transfers a percentage of one person’s pension to the other person after divorce. It creates a separate pension entitlement and is usually the formal way pensions are split.
What is a Pension Sharing order
A Pension Sharing Order is a formal decision by the court to divide one person's pension with the other party. It sets out a clear percentage, and that share gets carved out and transferred into a separate pension for the recipient. The result?
You both walk away with your own independent retirement savings. No need to stay financially entangled. No gambling on what the future might bring.
Depending on the specific pension(s) that's shared, you will:
Keep the share in the same scheme (an internal transfer), or
Move it into your own pension elsewhere (an external transfer)
Why it matters
If one of you has built up a large pension. Maybe in the NHS, the police, or a company scheme, and the other hasn't, it's easy for things to become unfair fast. A Pension Sharing Order is the fairest way to correct that imbalance.
Offsetting (e.g. keeping the house in exchange) sometimes works. But not always and it requires analysis and careful consideration.
How do you get a PSO?
Here's what the process looks like:
1) Start the divorce process:
Speak to a solicitor or submit your divorce application if you're not represented.
2) Share your financial picture with the other party:
Both sides have to disclose their assets. Including every pension.
3) Involve a PODE if needed:
A Pensions on Divorce Expert helps you and the court understand what's fair, especially if there are complex pensions involved.
4) Agree the terms of your divorce:
You might settle through mutual consent, mediation, or by going through the courts.
5) Obtain your Pension Sharing Order:
Depending on how you agreed the terms of your divorce, you will get this as part of your 'Financial Consent Order' or as part of a 'Court Order.'
6) Send it to the pension provider:
Once you have the order, it needs to go to the pension scheme along with a short standard form. If you're the one receiving the pension share, it's worth getting financial advice on what to do with it. We can help with that too.
7) Wait for implementation:
Once fees are paid and the order is valid, the scheme has up to 4 months to action it.
How much does a PSO cost?
Expert fees if a PODE is involved
Legal costs for drafting the order (if you are represented)
An implementation fee (usually £100–£500 but can be as much as a few thousand for pensions in payment or complex pensions)
The bottom line
Too many people settle without understanding what's in the pension, or what's at stake. Years down the line, that can mean one party struggles in retirement.A Pension Sharing Order isn’t just paperwork. It’s your safety net. Your chance to walk away with financial clarity and confidence.
FAQ’s
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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. Once implemented, there's no undoing it.
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No. It is possible to apply without a solicitor if you are representing yourself. However, the legal drafting of the order needs to be precise, and pensions are complex. Many people use a solicitor for this stage even if they have handled other parts of the divorce themselves.
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This is the moment many people get stuck: you’ve got a pension credit, but you’re suddenly faced with decisions that can affect your retirement for decades.
The key question becomes: where should that pension credit sit going forward? Depending on the scheme, you may be able to:
Leave it where it is (an internal arrangement within the same scheme), or
Transfer it to a different pension provider (an external transfer), if the scheme allows this
The “right” home for the pension credit depends on factors like:
Your age and retirement timeframe
Whether you need flexibility (e.g. income options, tax-free cash, access ages)
Investment approach and risk level
Charges, guarantees, and any benefits you might lose by transferring
How the pension credit fits with your other pensions and wider financial plan
Once your PSO has been made we can assist with the implementation of your pension credit through our financial planning partnerships.
What to do next
If you're ready to move towards a Pension Sharing Order, the first step is making sure your pensions have been properly valued. Our free assessment will tell you what type of PODE report your situation might require, and what happens next.
