Pension Sharing Order After Decree Absolute

Divorcing from your spouse can be an incredibly stressful experience, and deciding how your and your ex-spouse’s assets should be divided can be one of the hardest-fought issues to arise from your separation. A pension sharing order after decree absolute forms part of your divorce financial settlement, and it can form a significant portion of the assets you receive.

Our expert family law team specialise in advising divorcing couples on all issues arising from their separation, including child arrangements, maintenance, and financial settlements. We couple our technical legal excellence with a truly personal approach, ensuring you feel supported throughout your matter.

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What Is A Decree Absolute?

Divorces in England and Wales comprise a conditional order and a final order. These orders were previously referred to as a decree nisi and a decree absolute.

A conditional order, or decree nisi, is the first court order. It does not end your marriage but merely confirms that the court accepts that you are eligible for a divorce.

A final order, or decree absolute, follows a conditional order or decree nisi. It is the final order in the divorce process and officially ends your marriage.

What Is A Pension Sharing Order After Decree Absolute?

Many of our clients are anxious to ensure that they and their children remain financially secure following their divorce. Key assets, such as the family home and any business interests, are often understandably top of their lists to consider. However, pensions can be an incredibly important asset, particularly when you retire. Accordingly, giving due consideration to how they should be shared following your divorce is crucial.

A pension sharing order after decree absolute is a court order that provides for one spouse to receive a percentage of the other spouse’s pension as part of the divorce financial settlement. The divorcing couple and the pension provider must comply with the terms of the pension sharing order.

What Are The Benefits Of A Pension Sharing Order After Decree Absolute?

A pension sharing order after decree absolute has a number of distinct benefits. They include the following:

A pension sharing order after decree absolute ensures a clean break. The parties are at liberty to manage their share of the pension pit as they wish once the order has been made. There is no further entitlement or dependency between the parties concerning pension rights.
A pension sharing order after decree absolute ensures each party has enough to live on when they retire.
A pension sharing order after decree absolute remains unaffected by subsequent events, such as remarriage.

Are There Any Disadvantages To A Pension Sharing Order After Decree Absolute?

Before seeking a pension sharing order after decree absolute, it is important to consider the potential implications. Some possible downsides to a pension sharing order after decree absolute include the following:

A pension sharing order after decree absolute may have tax implications.
Some pension pots may be complex and difficult to split.
You may need to pay the pension provider a fee to implement the split. The fees can vary significantly from scheme to scheme, with some pension providers charging thousands of pounds. The parties must ascertain the costs involved in implementing the pension sharing order after decree absolute and agree on who will pay those costs.

When Does A Pension Sharing Order After Decree Absolute Come Into Effect?

As you might expect, a pension sharing order after decree absolute comes into effect once the decree absolute has been granted. It is essential that the pension order after decree absolute be implemented, particularly if you are the receiving party. Failure to do so can result in substantial financial losses.

Pension schemes must implement a pension sharing order after decree absolute within four months of either:

The date on which the pension sharing order after decree absolute takes effect, or
The date on which the pension scheme receives all the documentation it needs to implement the split, whichever is later.

Should You Seek A Pension Sharing Order After Decree Absolute?

Whether you should seek a pension sharing order in the context of your divorce depends on a number of factors unique to your case. Our specialist family solicitors will consider your situation and advise on the suitability of a pension sharing order after decree absolute.

A pension sharing order after decree absolute can be particularly pertinent in cases where the couple is close to retirement age, one party’s pension is considerably higher in value than the other’s, or the couple’s other assets are not sufficient to meet both parties’ financial needs.