Pension-Sharing

The new remedy

On 1 December the Welfare Reform and Pensions Act 1999 introduced the new financial remedy on divorce of pension-sharing by adding a new s21 A to the Matrimonial Causes Act 1973 as follows: ‘A pension-sharing order is an order which provides that one party’s shareable rights under a specified arrangement or shareable state scheme rights, be subject to pension-sharing for the benefit of the other party’. ‘Shareable rights’ include benefits arising under occupational pension schemes, personal pension schemes, retirement annuity contracts or annuity or insurance policies purchased or transferred for the purpose of giving effect to rights under an occupation pension scheme or a personal pension scheme. It is not available on judicial separation, or to cohabiting couples of any sex.