Your ex-partner doesn’t automatically get a share of your pension when you divorce, and you don’t automatically keep it either. A pension is treated as a financial asset, like the house or your savings, and there are 3 main ways to deal with it. A pension sharing order moves a percentage of the pension into a separate pension for your ex. Offsetting lets one of you keep the pension in return for other assets. Earmarking, also called attachment, gives your ex a share of the payments when the pension is eventually paid. Sharing and earmarking both need a court order, and the right choice depends on the size of the pensions, your ages and what else is in the pot.
This guide covers England and Wales. It explains how each method works, which pensions count and what to check before you agree anything.
Are pensions part of a divorce?
Yes. Pensions count as financial resources in a divorce, and for many couples they are the biggest asset after the family home. You and your ex can agree how to divide them, or the court can decide. Ignoring them is a common and costly mistake, because a pension can be worth more than the home you’re arguing over.
In England and Wales the court can take into account the total value of the pensions you’ve each built up, not only the part built up during the marriage. How much is shared depends on your circumstances, including how long you were together, your ages, your needs and what other assets there are.
GOV.UK explains that you and your ex need to agree how to divide pensions, property, savings and investments, and that an agreement needs a consent order to make it legally binding. If you weren’t married or in a civil partnership, different rules apply and pension sharing isn’t available.
What is a pension sharing order?
A pension sharing order is a court order that moves a percentage of one person’s pension into a separate pension in the other person’s name. It’s a permanent split, so each of you ends up with your own pension and no ongoing link. Only a court can make one, usually as part of a financial consent order or a financial remedy order.
The order states a percentage rather than a sum, and the pension scheme applies it to the value at the time the order is put into effect. The share can be transferred into a pension in your name or, in some cases, you can join your ex’s scheme. You can’t draw on it until you reach the age at which that pension can be taken.
The share can only take effect once the divorce itself has been finalised with the final order. After the scheme has the order and the right paperwork, it usually has 4 months to put it into effect. Schemes can charge for the work, so ask early who will pay.
Here is a simple illustration. Imagine your pension has a cash equivalent transfer value of £200,000 and your spouse’s is £20,000. Sharing 45% of yours would move £90,000, leaving each of you with £110,000. In real cases the figures depend on the type of pension and what else is being divided.
How does pension offsetting work?
Offsetting means one of you keeps your whole pension and the other receives other assets of equivalent value, usually a bigger share of the equity in the home or a cash sum. It can suit couples where the family home is the main asset or where a pension is too small to be worth splitting.
You and your ex can agree to offset pensions without a court order for the pension itself, but you should still record the whole settlement in a consent order, because that’s what makes it binding.
The difficulty is value. Pound for pound swaps rarely work. Cash or housing equity can be used now, while a pension can’t be touched until the minimum pension age and is generally taxed as income when you draw it. For a final salary type scheme, the headline figure can also be misleading. A fair offset usually needs more than a simple one for one calculation, and that’s where expert advice earns its fee.
What is pension earmarking?
Earmarking, also called a pension attachment order, leaves the pension with its owner. When the pension starts to be paid, a set part of the income, the lump sum or both goes to your ex. A court has to make the order, and you can’t receive anything until your ex actually starts taking their pension.
That’s the weakness. You depend on your ex retiring when it suits you, and the payments can stop in certain events, such as your ex dying or you remarrying. It also keeps your finances tied to theirs. For these reasons it’s now used less often than sharing.
If your ex has already retired, other options exist. A deferred pension sharing arrangement lets a share transfer at a later date, and a deferred lump sum gives you a payment from the pension when your ex retires. These can be more complicated to arrange, so legal costs can be higher.
Sharing, offsetting and earmarking compared
| Method | How it works | Court order needed | Clean break | Main drawback |
| Pension sharing | A percentage moves into a separate pension for your ex | Yes | Yes for the pension | Reduces the holder’s retirement income and the scheme may charge fees |
| Offsetting | One of you keeps the pension and the other takes other assets | Not for the pension alone, but the whole deal should be in a consent order | Yes | Hard to value fairly, and cash is not worth the same as a pension |
| Earmarking | A share of the pension payments goes to your ex when they start | Yes | No | Depends on your ex retiring, and payments can stop in some situations |
Which pensions can be divided, and how are they valued?
Most pensions can be taken into account.
- Workplace Pensions, Including Public Sector Schemes
- Defined Contribution Pensions Where You Build A Pot
- Defined Benefit Or Final Salary Pensions Based On Your Pay
- Personal Pensions
- Additional State Pension Built Up Before 2016
The basic State Pension and the new State Pension can’t be shared. The court can however decide that any Additional State Pension is shared as part of the settlement, and you will need to apply for a State Pension forecast on divorce using form BR20.
Pensions are usually valued using the cash equivalent transfer value, which is what you would get if you moved the pension elsewhere. It can be lower than the fund value because it includes transfer charges, and only the pension holder can ask for it. The annual statement is a free starting point. For defined benefit schemes the figure rarely reflects the true value, so the MoneyHelper guidance recommends specialist help from an actuary or a financial adviser who works on divorce cases.
That expert is often called a pension on divorce expert. You pay for the report, so ask about the cost first. For larger or more complicated pensions it is usually money well spent, because a wrong valuation can skew the whole settlement.
What to do before you agree a pension settlement
These steps help whichever method you end up using.
- List Every Pension You And Your Ex Have, Including Old Ones
- Ask Each Scheme For A Transfer Value And A Copy Of Its Rules
- Request A State Pension Forecast For Divorce
- Check Whether A Pension On Divorce Expert Report Is Needed
- Think About Your Income In Retirement, Not Only Today’s Fairness
- Get Advice Before You Sign A Consent Order
Old pensions are the ones that get missed. People change jobs, schemes merge and paperwork goes astray, so it is worth tracing every pension on both sides before you negotiate. In court proceedings you each give full financial disclosure, and that should include all of them.
The other trap is looking only at today. A split that looks equal on paper can leave one of you with far less income in retirement, especially if one pension is a final salary scheme and the other is a pot of savings. A divorce solicitor who deals with pensions regularly will know when an expert report is worth commissioning and when it isn’t.
Common pitfalls and what may change
A few mistakes come up repeatedly in pension settlements.
The first is relying on a transfer value alone for a defined benefit pension. The second is treating £1 of pension as equal to £1 of cash. The third is agreeing a deal informally and never turning it into a court order, which leaves it open to challenge because an agreement between you isn’t binding until a court approves it.
Timing matters too. Try to sort the financial order out before or alongside the divorce rather than leaving it until afterwards. If you remarry before getting a financial order, you can lose the right to apply for one.
The law may change. The Ministry of Justice published a consultation called A fairer end to relationships on 5 June 2026, and it closed on 14 August 2026. It proposes reforming financial remedies on divorce, including legally binding qualifying nuptial agreements. A consultation isn’t law, so the rules in this guide still apply unless and until Parliament changes them.
Funding your divorce and other legal help
We understand that legal costs are a worry at a difficult time. Our family team can offer a fixed fee for divorce matters and for finalising your financial agreement through a clean break financial consent order, so you know the cost before you start. You can read more about our family law solicitors and the support we offer.
A divorce can also raise other legal questions.
- Update Your Will After Separation With Our Wills And Probate Solicitors
- Plan For Care Costs And Trusts With Our Later Life Services Team
- If You Are Claiming Injury Compensation, Our Personal Injury Solicitors And Serious Injury Solicitors Can Advise On That Claim
- If The Injury Happened At Work, Our Accident At Work Solicitors Can Help
- If Your Health Problems Followed Medical Treatment, Our Medical Negligence Solicitors Can Review What Happened
- If You Are Dealing With A Relative’s Care Home Standards, Our Care Home Negligence Claims Team Can Help
Frequently asked questions
How is a pension split in a divorce?
There are 3 main methods. A pension sharing order moves a percentage into a separate pension for your ex. Offsetting lets you keep the pension and give up other assets. Earmarking gives your ex a share of the payments when the pension starts. Sharing and earmarking need a court order, and the right method depends on the pension type, your ages and the other assets.
What percentage of a pension does a spouse get?
There’s no fixed percentage. The court starts from fairness and often looks at what each of you will need in retirement, taking into account the length of the marriage, your ages and the other assets. An equal split of the pension built up during the marriage is a common starting point, but it isn’t automatic.
Can my ex claim my pension after the divorce?
Possibly. If pensions weren’t dealt with in a final financial order, an application can usually still be made after the divorce, unless a clean break order has already ended financial claims or the person applying has since remarried. Leaving it open is risky, so it is better to deal with pensions at the same time.
How long does a pension sharing order take?
The order can only take effect once the divorce is finalised. After that, the pension scheme usually has 4 months from receiving the order and the right paperwork to put it into effect. Valuations and negotiations before that point can take much longer, particularly for final salary pensions.
Talk to Mark Reynolds Solicitors
If you’re separating and aren’t sure what to do about a pension, speak to us before you agree anything. Call us on 0800 002 9577 or contact our team for a free, no obligation consultation. We have offices in Liverpool, Leigh, Runcorn and Warrington.