This guide is for financial advisers only. It must not be distributed to, or relied on, by customers.
There are a few different ways to deal with pensions on divorce. The professional advisers/solicitors supporting the couple will decide which option is best for their clients:
1. The pension rights can be offset against other assets as part of the divorce proceedings.
2. An earmarking order (also known as a pension attachment order) can be issued.
3. The pension rights can be subject to a pension sharing order (PSO).
This guide covers pension sharing orders and pension earmarking (attachment) orders in England and Wales and in Scotland. In Scotland, only the pension rights accrued during the period of the marriage or civil partnership are taken into consideration whereas, in England and Wales, the total value of all the pension rights is taken into account.
The legislation covering the main rules and procedures differs for these two areas and the differences are highlighted thoughout this guide.