Can I Get a Pension Sharing Order if My Spouse’s Pension Is Already in Payment?

Many people going through divorce are concerned about what happens to pensions, especially if one spouse has already started drawing theirs. The good news is that you can still apply for a pension sharing order, even if your spouse’s pension is already in payment.

At Hegarty, our specialist family law solicitors regularly advise clients on how to protect their financial future in divorce, including dealing with pensions. Here’s what you need to know.

Pension sharing on divorce: the basics

Since 2000, the law has allowed divorcing couples to share pensions to help balance out retirement income. A pension sharing order is a court order that divides pension assets between spouses, ensuring a fairer financial settlement.

What if the pension is already in payment?

Many people wrongly believe that once a pension is being paid, it can’t be shared. This is not true.

A pension sharing order can be made against a pension in payment, but there are some additional considerations to be aware of:

• Tax-free lump sum may already be taken
  If your spouse has already withdrawn their tax-free lump sum, you usually won’t get an equivalent lump sum when the pension is transferred to you.
• When you can access the pension
  Even if your spouse is already receiving payments, you won’t automatically start drawing your share straight away. Your ability to access the pension depends on your own age and the rules of the specific pension scheme.
• Timing and clawback
  Implementing a pension sharing order typically takes around 4 months from the date of the court order. During this time, your spouse will continue to receive their pension. The pension scheme may later “claw back” payments covering this period, so it’s sensible for your spouse to set aside those amounts to repay if requested.

Why it’s important to get expert advice

Pensions can be one of the most valuable assets in a marriage and sharing them fairly can make a significant difference to your retirement. But the rules are complex, especially when pensions are already in payment.

To make sure you understand your rights and get the best possible outcome, it’s essential to speak to an experienced family law solicitor. We can review your circumstances, explain your options, and guide you through the process.

Need advice about pension sharing on divorce?

Contact our friendly and professional team at Hegarty for legal advice you can count on. We’re here to help you protect your financial future, ensure a fair distribution of pension assets, and get you the best possible outcome in divorce proceedings.