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Pension sharing orders in divorce
Important information - the value of investments can go down as well as up so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. You cannot normally access your SIPP until age 55 (57 from 2028).
What is a pension sharing order?
Pensions are shared according to the terms of your divorce. But one of the ways a pension can be split is through a pension sharing order.
A pension sharing order is when your pension entitlements are separated by the courts (or by Minutes in Scotland), so you can each run your own pensions independently of each other, giving you a clean break.
However as the courts aim for an equal split of assets in divorce proceedings, they may decide to give some of your pension to your ex-partner, or vice versa, so each of you have an equal share.
The amount given is called a pension debit and the amount received is a pension credit. In England and Wales, the amount is expressed as a percentage of the cash equivalent transfer value (CETV) of the pensions, whereas in Scotland it can also be shown as a monetary amount. This is important as the value of the pension may change between the date of the separation and when the pension debit starts.
If you're receiving the pension credit you will need to have a pension scheme that accepts these transfers or if possible, join the original pension scheme.
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Pension sharing order FAQs
Other ways to divide your pension
Offsetting
You or your ex-partner get a share of another asset, rather than the actual pensions.
Pension attachment/earmarking orders
A proportion of the pensions are paid directly to you or your ex-partner when the benefit pays out.
Important information - this information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
