A pension share essentially means that a pension on divorce is shared between the parties.  The pension member who loses a percentage of the pension (called the pension debit) the other party receives the percentage of the pension which is transferred to him/her (the pension credit).  The person receiving the pension share then has his/her own entitlement to that share of the pension.

Independent financial advice is often taken to consider the relevant options which include:

• An internal transfer – this means that the pension share remains within the existing pension scheme; or
• An external transfer – where the pension credit has to be transferred out of the existing pension scheme and invested in a new pension of his/her choice.

We are not independent financial advisers but we have links to specialist pension experts who can assist with the relevant pension options and the implementation of any pension sharing order.

A pension sharing order can only be made following a divorce and by a Court order.  A pension scheme has four months to implement the pension sharing order/annex from the date it is served with the relevant papers.  In considering pension sharing, it is also important on a case by case basis to consider the other relevant options of pension attachment and pension offsetting.  It is also important that the pension valuation is fair and accurate and special care must be taken where the pensions are perhaps unusual in nature particularly where the benefits are undervalued and the scheme is particular, for example, a final salary scheme, an NHS pension, police pension, army pension and the footballers’ pension.  Specialist legal advice and independent financial advice (including actuarial input) is recommended. 

James Maguire & Co is a specialist firm of Family Law and Divorce law solicitors based in Wilmslow, Cheshire.  We offer legal advice to parties going through a divorce including the financial issues which flow from this (including pensions), linked business issues, international aspects and any relevant issues concerning the children.

We advise clients in the Wilmslow area and also to the surrounding areas of Alderley Edge, Bramhall, Hale, Altrincham, Manchester and the North West. We are also able to act for clients nationally and internationally subject to the jurisdiction of England and Wales.  For advice please contact James Maguire by telephone +44 (0) 1625 529456 or by email james.maguire@family-law