I'm getting divorced - how does pension sharing work?


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The aim of pension sharing is to allow divorcing couples a ‘clean break’ by sharing the pension rights at the time of the divorce. This means that the ex-spouse will have a pension set up which is separate from their spouse. The ex-spouse can usually choose to have a benefit (often a Defined Contribution only membership) with TPT Retirement Solutions under their own membership number, or they can transfer the benefits out to their own pension arrangement.

Pension sharing can only be used where the divorce is final and the Pension Sharing Order has been sent to us. It will not be available in cases of judicial separation.

In England, Wales and Northern Ireland, all accrued pension rights up to the time of divorce may be shared. In Scotland, only those pension rights accrued during the marriage can be shared. We will therefore request the dates of marriage and separation before we can calculate any Divorce Cash Equivalent Transfer Value required under Scottish Law. Shareable rights’ include any private pension rights. They will not include any widow’s, widower’s, children’s and dependant’s pensions already in payment. State Pension benefit may also be included. More information on the effect on your State Pension can be found on HMRC.gov.uk.