The importance of a Pension Sharing Order & how to enforce one

A recent case has highlighted the importance of ensuring that any Pension Sharing Order made by the court is swiftly implemented following the conclusion of divorce and financial proceedings.  
 
Here, Debbie Heald explains the process for implementing a Pension Sharing Order and the remedies available if one party fails to engage in that process.  

What is a Pension Sharing Order? 

It is possible for the Court to make an Order which provides for a specific percentage of one party’s pension to be transferred to the other party’s pension as part of the financial settlement on divorce. Pension Sharing Orders enable pension assets to be shared on a clean break basis to ensure parties can meet their own needs during retirement. They are particularly important in cases where parties are nearing retirement and/or where pensions form a large proportion of the assets available for distribution. 
 

How to implement a Pension Sharing Order 

The Financial Order will provide for pension sharing in accordance with the Pension Sharing Annex — known as Form P1. After the terms of the Order have been agreed, a draft is sent to the pension provider to ensure that the Order is capable of implementation. The pension provider has 21 days to respond to the draft documentation.  

The Financial Order and Pension Sharing Annex will then be sent to the court for approval by a judge. The Order will usually make provision for one of the parties to deal with service of the relevant documentation upon the pension provider to implement the Pension Sharing Order.  

The Pension Sharing Order comes into effect on the ‘transfer day’ — 28 days after the date the order was approved by the court or upon pronouncement of the Final Order of Divorce, whichever is later. 

What documents are required? 

To deal with implementation, the pension provider will require sealed and dated copies of the following documents, as well as confirmation as to what form the pension credit will take: 

• Financial Remedy Order.
• Pension Sharing Annex.
• Final Order of Divorce. 
    

The pension provider then has four months from the date it receives all necessary information and documentation required to implement the Order.  

The date the Pension Sharing Order is implemented is known as the ‘valuation day’ and thereafter the pension provider has 21 days to notify the pension holder that implementation has taken place and the impact on their pension benefits.  

What happens if one party fails to engage in the implementation process? 

That party is in breach of the Court Order and the other party can enforce the Order by way of an application to the court.  

The court can make further directions, for example ordering the non-compliant party to undertake a course of action to enable the Order to be implemented or make Orders against the pension provider in relation to implementation. 

What can the court do if typical enforcement Orders are unsuccessful? 

In the case of AP v TP (Pension Enforcement) [2025] EWFC 190 (B) HHJ Farquhar, an application by the former husband set aside a Pension Sharing Order made in 2023 due to the former wife’s failure to engage with implementation of the Order. The former husband successfully argued that it would be inequitable not to do so given that he’d reached the age of 70 but was unable to access his pension because it was subject to a non-executed Pension Sharing Order.  
 
In deciding to set aside the Pension Sharing Order, the court also considered both varying the order to 0% and varying the order to a Pension Attachment Order but determined that variation wasn’t possible since the final Order of Divorce had already been pronounced.  
 
Setting aside the Pension Sharing Order was appropriate given the significant and relevant change of circumstances, since the Order was entered into and the fact that it would’ve been inequitable not to set aside the Order. The former wife, who was some 12 years his junior, failed to engage in the proceedings and was ordered to pay £20,000 towards her former husband's costs.  

Talk to us 

The enforcement of a Pension Sharing Order is a critical step in ensuring that the financial outcomes of divorce proceedings are realised. Prompt action and clear communication with the pension provider is all essential to avoid unnecessary delays.  
 
If difficulties arise, seeking early legal advice can help to resolve issues efficiently and protect your interests. If you need help, our award-winning family lawyers are here to help. 

Talk to us by sending an email to hello@brabners.com, calling 0333 004 4488 or completing the contact form below.