Pension Sharing Orders & Applying For Decree Absolute

Financial arrangements for parties going through divorce or dissolution of civil partnership can be resolved in two ways:

1. Through an agreement reached between the parties, which is approved by the Court in a consent order; or
2. The Court making an order itself at a final hearing.

In either situation, once a financial order has been made or approved by the Court most people are keen to finalise matters as soon as possible and apply for decree absolute. One thing that causes delay is if there is to be a pension sharing order.

How does a pension sharing order delay applying for decree absolute?

A pension sharing order sets out how much of a pension will be given to you or your former spouse. If there is no order then decree absolute can be applied for immediately. However, if your financial order includes a pension sharing order, you should wait 28 days before you can safely apply for decree absolute.

So why wait? A pension sharing order comes into effect on the later of the granting of decree absolute or 28 days from the date of the order. Until a pension sharing order has come into effect it cannot be enforced. Therefore, if you apply immediately for decree absolute, which will usually be processed quickly by the Court, your divorce may be finalised before 28 days have passed and the pension sharing order has come into effect. If you are the beneficiary of the order this leaves you at risk. If your ex-spouse, the member of the pension scheme, dies before 28 days have passed and the pension sharing order has not taken effect, the order cannot be enforced and, as your decree absolute will have finalised your divorce, you will no longer have the protection of any widow/widower’s pension rights or benefits.

It is therefore incredibly important to wait until 28 days have passed from the date the pension sharing order is approved by the Court before applying for decree absolute. If your spouse were to die at any point before decree absolute has been granted, whilst the pension sharing order will not have taken effect, you would be protected because you retain your widow/widower’s pension rights under any scheme which offers such benefits. Once the 28 days have passed and you receive your decree absolute, the pension sharing order will take effect and your pension rights are protected through the terms of the order.

So, whilst it can be frustrating to have to wait for a further 28 days, after what may have already been a long process, it can be vital to ensure that your pension rights are protected.