Pension attachment/ earmarking orders in divorce
What is pension attachment/earmarking order?
Pensions are shared according to the terms of your divorce. But one of the ways a pension can be split is through a pension attachment order (or earmarking in Scotland).
This is when a share of one of your pension benefits is paid directly to the ex-partner. It only begins when the pension member starts to draw an income or dies, so there is no clean break between you and your ex-partner after divorce.
Only a court can order that one of you receives one or more, and all or part of, the following benefits:
- Pension commencement tax-free lump sum.
- Pension income (this doesn't apply in Scotland).
- Death-in-service lump sum death benefits.
You can go to court to get your pension attachment/earmarking order varied after it has been agreed, if you both agree.
In view of its inherent drawbacks, on the whole this option has been seldom used in recent years.
| Benefits of pension attachment/earmarking orders | Drawbacks of pension attachment/earmarking orders |
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Other ways to divide your pensions
Offsetting
You or your ex-partner gets a share of another asset, rather than the actual pensions.
Pension sharing orders
A share of the pensions is transferred to you or your ex-partner.
Important information: This is for information purposes only and the views contained are not to be taken as advice or a recommendation for any product, service or course of action. If you need advice about how any of this information applies to you personally, you should contact an authorised financial adviser. Tax treatment depends on individual circumstances and all pension and tax rules may change in the future. You cannot normally access your pension savings until age 55. This is due rise to 57 in 2028.