Pension Sharing
Orders Explained
How Police Pensions Are Divided in Divorce (UK 2026)
Quick Definition
What Is a Police Pension Sharing Order?
A Police Pension Sharing Order is a court order made during divorce proceedings that legally transfers a percentage of a police officer’s pension to their former spouse. It applies to defined-benefit police pension schemes (1987, 2006 and 2015) and is implemented by the scheme administrator following a final financial order.
Section 01
The Regulatory Basis
Police Pension Sharing Orders (PSOs) are governed by a strict intersection of family law and public sector pension regulations. Understanding these layers is essential for a fair valuation.
- Matrimonial Causes Act 1973: Enables the court to adjust financial assets.
- Welfare Reform and Pensions Act 1999: The specific mechanism for sharing.
- Police Pension Regulations: Specifies scheme-specific implementation rules.
- Financial Remedy Proceedings: The legal process where the PSO is decided.
Core Principles
The court operates under the principle of Full Disclosure. Failing to disclose a pension (or obtaining an inaccurate CETV) can lead to the settlement being reopened years later.
Comparing Division Methods
While a Pension Sharing Order is the most common outcome, it is one of three primary methods the court considers.
| Feature | Sharing Order | Attachment | Offsetting |
|---|---|---|---|
| Ownership | Split into two pensions | Income paid later | Pension retained |
| Clean Break | Yes | No | Yes |
| Primary Risk | Actuarial valuation risk | Future payment risk | Valuation accuracy risk |
Section 03
CETV & DB Complexity
The starting point for any pension sharing order is the Cash Equivalent Transfer Value (CETV). In a Defined Benefit scheme like the Police Pension, this is a calculated value representing the cost of replacing your benefits elsewhere.
Critical Warning
CETV often significantly undervalues the long-term, index-linked, government-guaranteed income of a police pension. A £500k CETV does not necessarily buy a £500k equivalent income on the open market.
Worked Example (Illustrative)
Note: The ex-spouse does not receive £150k cash; they receive an equivalent pension benefit within the scheme.
Scheme-Specific Impact
How sharing affects the three different regulatory eras.
1987 Scheme
- • Final salary structure
- • Double accrual impacts
- • Lump sum interaction
2006 Scheme
- • 1/70 accrual rate
- • Automatic lump sum
- • Different NPA rules
2015 CARE
- • 1/55.3 accrual rate
- • CPI revaluation logic
- • Normal Pension Age 60
The Implementation Flow
The "Clean Break" principle: Once implementation is complete, the two pensions are legally and administratively independent. One party's death or retirement does not affect the other.
Impact on the Officer
Sharing a pension directly reduces the annual income you will receive at retirement. It also affects:
- • Lump sum reduction proportional to the share.
- • Early retirement options may be restricted.
- • Ill-health enhancements may be calculated on the post-share value.
- • McCloud rollback choices affect the baseline value.
Impact on the Ex-Spouse
The ex-spouse becomes a 'Pension Credit' member. Key features of their new independent asset include:
- • Their own pension age (typically age 60/65).
- • Guaranteed annual income linked to CPI.
- • Independent lump sum options.
- • No survivor benefits for a new partner in most cases.
Injury Awards & Sharing
Unlike the standard pension, Regulation B Injury Awards are generally treated as compensation for disability. While they are disclosed, they are almost never shared as capital but rather considered as income for the purpose of maintenance calculations.
Strategic
Risks
Underestimating CETV
Failing to obtain a PODE report can leave thousands off the table.
Offsetting Errors
Trading a house for a pension needs accurate tax-adjusted valuations.
Ill-Health Timing
Medical retirement during divorce complicates sharing logic.
McCloud Failure
Failing to account for remedy recalculations.
Failing to obtain
specialist actuarial
advice
is the #1
cause of settlement
imbalance.
Pension Share Impact Estimator
Illustrative Modelling Tool (UK 2026 Regulations)
Estimated Monthly Impact
Remaining Pension
£22,500
Annual Gross
Lifetime Impact
£187,500
Est. 25 Years
Financial Exposure Risk
Moderate IMPACT
Disclaimer: This tool provides illustrative estimates only. Actual pension sharing depends on specific CETV valuations at the time of the order and the implementation of the McCloud remedy.
Myth vs Reality
| Myth "Police pensions are protected from divorce." | Reality They are marital assets subject to court division. |
| Myth "Sharing is always 50%." | Reality The court applies fairness principles based on needs and other assets. |
| Myth "Injury awards are automatically split." | Reality Typically treated as income, not divisible capital. |
Common FAQs
Is a police pension sharing order automatic?
No, a Pension Sharing Order is not automatic. It must be applied for as part of a financial remedy application during divorce or civil partnership dissolution. The court has discretion to make an order if it is considered a fair and necessary part of the financial settlement.
Can my ex take half my police pension?
The court can order a share of up to 100% of a pension, though 50% is a common starting point for long marriages. However, the final percentage depends on other matrimonial assets (like the family home), the length of the marriage, and the future needs of both parties.
Does a sharing order affect retirement age?
For the officer, the normal pension age remains the same, though the value of the pension is reduced. For the ex-spouse (the 'pension credit member'), they will typically be able to draw their shared portion at the scheme's normal pension age (e.g., age 60 for the 2015 scheme), regardless of when the officer retires.
What is the implementation period?
Once the scheme administrator receives the final Pension Sharing Order and the implementation fee, they have a statutory period of four months to implement the share and create the new pension credit for the ex-spouse.
Can a police pension be transferred instead?
No. Since 2015, most 'unfunded' public sector pensions, including the Police Pension Scheme, cannot be transferred to defined contribution or personal pension schemes. The only way to 'split' the value is via a Pension Sharing Order within the scheme itself.
Is actuarial advice required?
While not legally mandatory, obtaining advice from a Pensions on Divorce Expert (PODE) is highly recommended. Police pensions are complex defined-benefit schemes, and a basic CETV often significantly undervalues the long-term guaranteed income compared to private sector assets.
Does McCloud affect pension sharing?
Yes. The McCloud remedy means many officers will have their service between 2015 and 2022 moved back into legacy schemes. This changes the CETV and the value of the pension being shared. Settlements made without accounting for McCloud may need expert recalculation.
Related Resources
This guide is a core component of the Family & Financial Law Hub. For a broader overview of the divorce process, visit our Divorce Authority Guide. You can also model your retirement projections using the Police Pension Calculator or browse the Pension Hub for scheme-specific rules.
Disclaimer: This guide is provided for informational purposes only and does not constitute legal or financial advice. The Police Pension Scheme is complex and individual circumstances vary. Always seek professional advice from a qualified family law solicitor or financial advisor.