What Happens If You Don’t Implement Your Pension Sharing Order?

A pension sharing order doesn’t implement itself. This catches many divorcing couples off guard. The court order grants you the legal right to a share of your ex-spouse’s pension. But until you actively implement that order with the pension provider, you have nothing. The pension remains entirely in your former partner’s name.

Failing to implement a pension sharing order properly can have serious consequences. In the worst cases, the entire award can be lost.

A Pension Sharing Order Is Not the Same as Receiving Your Pension

Many people assume that once the court makes a pension sharing order, the pension is automatically divided. This is not the case.

The order gives you a percentage or the whole of the pension’s value. Implementation is the separate administrative process that actually transfers that percentage into a pension in your own name.

Until implementation is complete, the pension remains in your ex-spouse’s name. Your order is simply a piece of paper.

For defined contribution pensions, implementation can create a new pension pot in your name with the current provider. For defined benefit schemes, you may receive a cash equivalent transfer value which must then be invested in a suitable pension arrangement. This will depend on the type of scheme.

Neither happens without your direct action.

A Pension Sharing Order takes effect on the later of either 28 days after the court approves the financial order or the date of the Final Order of divorce. If the transferer dies before the pension sharing order has taken effect, the pension sharing order cannot be enforced, potentially resulting in the loss of the entire pension share and any widower/widow’s rights.

What Changes When You Implement Your Pension Sharing Order

What Happens If You Don’t Implement the Order

Without implementation, your pension sharing order remains an unexercised right rather than actual pension ownership.

If you never implement the order, you will never receive your pension share. The court will not chase you, and the pension provider will not contact you. The responsibility sits entirely with you.

In practical terms, this means your ex-spouse retains the full pension. When they retire, they receive the full benefit. When they die, their nominated beneficiaries receive any death benefits. You receive nothing because, legally, you never completed the transfer.

Some people delay implementation thinking they can deal with it later. This is a dangerous approach. Circumstances change, pension values change, people move addresses, lose documents, and forget details. Pension providers might merge or rebrand. Delay may add complexity.

Real Consequences of Implementation Failures

The risks of failing to implement properly are not theoretical. They happen regularly.

Death of your ex-spouse before implementation

This will depend on whether the Pension Sharing Order has taken effect. If it has not, then the Pension Sharing Order cannot be enforced, potentially resulting in the loss of the entire pension share and any widower/widower’s rights.

If the Pension Sharing Order has taken effect, then it will depend on the scheme rules whether it will be implemented.

Change in pension value

Your pension share will be recorded as a percentage rather than a monetary value. Therefore the percentage you will receive will depend on the value of the pension at the time of implementation. Pension values can go up and down. Delay can significantly impact on the value received as against the intended value.

Pension provider delays

Some schemes, particularly public sector defined benefit schemes, have lengthy processing times. If you submit your implementation request just before a critical deadline or life event, provider delays can create serious problems.

Lost or incomplete documentation

Implementation requires the correct version of the order, the Final Order/Decree Absolute, and completed provider forms. Missing documents mean delays. Some providers are strict about documentation and will reject incomplete applications.

Changes to the pension scheme

Schemes can close, merge with others, or change administrators. If you delay implementation for years, you may find the process has become significantly more complicated.

Remarriage complications

While remarriage does not affect a pension sharing order itself, the administrative complexity of dealing with multiple name changes and updated documentation can cause delays if you have not already implemented.

The Role of Solicitors and Financial Advisers in Implementation

Your solicitor obtains the pension sharing order and ensures it is correctly drafted as part of your overall settlement. They can also handle the initial submission to the pension provider. However, solicitors are not pension specialists and cannot advise you on what to do with the transferred funds.

A financial adviser specialising in pensions on divorce can guide you through investment decisions for the transferred amount. This is particularly important for defined benefit transfers where you must decide how to invest a cash equivalent value. Poor investment decisions at this stage can significantly affect your retirement income.

Neither professional automatically handles implementation unless explicitly instructed. It is important to clarify with your solicitor if you would like them to assist with submitting the implementation paperwork.

Steps to Ensure Proper Implementation

Protecting your pension award requires prompt and organised action.

1. Start by obtaining certified copies of all relevant documents: the pension sharing order, the Final Order (decree absolute), and any annexes. Keep these securely. You will need them for implementation and potentially for years afterwards.
2. Contact the pension provider directly to confirm their specific implementation requirements. Different schemes have different forms and processes. Ask for written confirmation of what they need and their expected processing time.
3. Submit your implementation request – do you wish for the solicitor to submit the documentation to the pension provider or will you do this yourself?
4. Follow up regularly. If you have not received confirmation within the expected timeframe, chase. Pension providers handle high volumes and paperwork can be mislaid.
5. Consider instructing a specialist financial adviser before implementation. The decisions you make about receiving and investing your share may affect your retirement income for decades.
6. Keep records of everything: submission dates, reference numbers, correspondence. If something goes wrong later, documentation is your evidence.

Frequently Asked Questions

Is there a time limit to implement a pension sharing order?

There is no statutory deadline for implementation. However, delaying can create significant risks including the potential loss of your entire award if your ex-spouse dies before implementation completes.

Can I implement a pension sharing order myself?

Yes, you can submit implementation paperwork directly to the pension provider. However, many people instruct their solicitor to handle this to ensure it is done correctly. For complex schemes or large values, specialist advice is recommended.

What happens to my pension share if my ex-spouse dies?

This will depend on whether the Pension Sharing Order has taken effect. If it has not, then the Pension Sharing Order cannot be enforced, potentially resulting in the loss of the entire pension share and any widower/widower’s rights. This is one of the most serious risks of delayed implementation.

If the Pension Sharing Order has taken effect, then it will depend on the scheme rules whether it will be implemented.

Do I need a financial adviser to implement a pension sharing order?

Implementation itself does not require a financial adviser. However, you will need advice on how to invest or manage the funds you receive, particularly if you are receiving a cash equivalent transfer from a defined benefit scheme.

Talk to Us

Pension sharing orders are a valuable tool for achieving a fair financial settlement, but they only deliver value when properly implemented. If you are going through divorce and pensions form part of your settlement, or if you have an existing order that has not yet been implemented, we can help you understand your position.

Get in touch for a confidential discussion about your situation.