When a marriage ends, dividing pensions fairly is often one of the most important and complex parts of the financial settlement. A pension sharing order is designed to bring certainty and finality to that process. However, difficulties can arise when the order isn’t implemented properly or within the required timeframe.
In this article, we explain what happens if a pension sharing order isn’t put into effect, what steps you can take next and how to protect your financial position, along with how to get a free 30 minute consultation with a solicitor if you need tailored advice.
How a pension sharing order should work in practice
A pension sharing order is a court order made as part of divorce or dissolution proceedings. It sets out how a pension is to be divided between the parties, with a percentage of one person’s pension transferred into a pension scheme in the other person’s name. Once the order is made, it’s intended to create a clean break so that each party has clarity about their future retirement income.
Once the court has approved and sealed the pension sharing order, it must be implemented by the pension provider. This usually involves sending the sealed order and the relevant pension sharing annex to the scheme administrators, along with any additional information they request.
Under UK law, pension providers generally have up to four months from the date they receive all the correct paperwork to implement the order. During this time, the provider will calculate the pension share, create a new pension arrangement for the receiving party or transfer the funds into an existing scheme and formally confirm that the order has been completed.
Responsibility for sending the paperwork to the pension provider is often set out in the court order itself. In many cases, one party or their solicitor is tasked with serving the documents. If this step is missed or delayed, implementation can stall before it even begins.
Common reasons a pension sharing order isn’t implemented
There are several reasons why a pension sharing order may not be carried out as expected. One of the most common causes is administrative delay. Pension providers deal with large volumes of cases and if documentation is incomplete or unclear, they may pause the process until further information is provided.
Another frequent issue is a lack of cooperation from one party. This might involve failing to provide required personal details, ignoring correspondence or deliberately delaying the process. While a pension sharing order is binding, it still relies on both parties taking the necessary steps to allow implementation.
In some cases, complications arise because of the pension scheme itself. Older schemes, public sector pensions or schemes that have merged or changed administrators can have additional internal requirements. These can slow things down, particularly where specialist actuarial input is needed.
Why delays can cause serious problems
A pension sharing order only has real value once it has been implemented. Until that happens, the receiving party has no legal entitlement to the pension funds and no certainty over their future retirement income.
Delays can be especially damaging when one party is approaching retirement age, relies heavily on the pension for financial security or where the value of the pension fluctuates significantly over time. In some cases, prolonged delays can undermine the fairness of the original financial settlement.
Because a pension sharing order is a court order, failure to implement it can also amount to a breach of the financial remedy order. This can open the door to further legal action, additional costs and increased stress at a time when both parties are usually keen to move on.
What to do if a pension sharing order hasn’t been implemented
If you believe a pension sharing order hasn’t been implemented, the first step is to check whether the pension provider has received all the required documents. This includes the sealed court order and the correct pension sharing annex. Even a small administrative omission can prevent the process from starting.
It’s also important to confirm who was responsible for serving the paperwork. If the order states that one party or their solicitor was required to send documents to the pension provider, delays may be caused by a failure to do so. In many cases, this can be resolved by promptly providing the missing information.
If the pension provider has received everything but the four month implementation period has passed, you should request a clear explanation for the delay. Providers are expected to communicate any issues and may need to confirm whether additional information is required before they can proceed.
Where delays persist, taking legal advice is strongly recommended. A family law solicitor can contact the pension provider on your behalf, clarify responsibilities and ensure that your position is protected.
Can the court enforce a pension sharing order?
Yes. A pension sharing order is legally binding and the court has powers to enforce compliance if it’s not being implemented. If one party is deliberately obstructing the process or refusing to cooperate, an application can be made to the court to compel compliance.
In some situations, the court may issue further directions or orders to ensure the pension sharing order is carried out. This could include setting deadlines, requiring disclosure of information or addressing failures to comply with the original financial order.
If the delay has caused financial loss, such as a reduction in pension value or missed investment growth, it may also be possible to seek a remedy. Each case depends on its facts and early legal advice is crucial to understanding what options may be available.
What if the delay is caused by the pension provider?
Where a pension provider is responsible for unreasonable delay, formal complaints procedures may be available. Pension schemes are regulated and expected to act within statutory time limits once all documentation has been received.
In certain circumstances, complaints can be escalated to the Pensions Ombudsman. This may result in compensation where maladministration has caused financial loss or distress. A solicitor can help assess whether this route is appropriate and guide you through the process.
Get clear advice on your situation
Please note that this article is for informational purposes only and isn’t a substitute for legal advice. We encourage readers to contact Osbourne Pinner for case specific guidance.
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