PENSION SHARING
Pension Sharing Orders
CETV Explained | PSO vs PAO | Division Strategies | 2025 Guide
Pensions are often worth more than property but frequently overlooked. A Defined Benefit pension with £300k CETV might provide £15,000+ per year for life - worth over £400k in real terms. Always get proper pension valuation in divorce.
Types of Pension Orders
Pension Sharing Order (PSO)
Transfers a percentage of pension to ex-spouse who gets their own pension pot.
Advantages:
- Clean break
- No ongoing ties
- Own investment control
- Implementation fees
- Valuation complexities
- May be less for younger recipient
Pension Attachment Order (PAO)
Directs pension scheme to pay percentage to ex-spouse when pension comes into payment.
Advantages:
- No upfront fees
- Simple to implement
- Access to DB scheme benefits
- No clean break
- Dependent on ex-spouse
- Ends on remarriage/death
Pension Offsetting
One spouse keeps pension, other gets equivalent value in other assets.
Advantages:
- Avoids pension splitting
- Simpler
- Immediate asset access
- Valuation disputes
- Different asset types
- Tax treatment differs
Key Pension Terms
CETV
Cash Equivalent Transfer Value - the amount you could transfer to another pension
DB Pension
Defined Benefit (final salary/career average) - guaranteed income in retirement
DC Pension
Defined Contribution - pot of money you invest, no guaranteed income
Implementation
Process of actually transferring the pension after court order
Pension Division Costs
Free (must provide)
CETV Request (each scheme)
£500 - £2,000
Pension Actuary Report
£0 - £1,000+
Implementation Fee (per scheme)
£53 + drafting
Consent Order (pension only)
£275
Financial Remedy Application
Frequently Asked Questions
Analyse Your Pension
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