The humble pension sharing order is 25 years old: if you’re not celebrating, you should be, says Joanna Newton
- A discussion of pension sharing orders (PSOs) and the role pensions play in financial remedy.
- Explains why PSOs are underused, and highlights the importance of ensuring clients understand their short, medium and long-term financial considerations.
Twenty-five years of pension sharing orders (PSOs) is unlikely to be marked on many calendars. Nevertheless, the recent anniversary of the first order to be issued should not go unnoticed, primarily as an opportunity to highlight their value in ensuring long-term financial security for divorcees.
What are PSOs?
Pension sharing orders are sub-orders made within a financial consent order as part of financial remedy proceedings upon divorce. They essentially do what they say on the tin: they enable the sharing of a portion of one party’s pension with the other party to ensure a fair split of the matrimonial assets upon divorce.
PSOs will identify how much pension is to be transferred to the receiving
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