Pension equalisation is the division of retirement pension after a divorce. The former partner is entitled to half of the retirement pension accrued during the marriage or registered partnership, payable once the pension falls due.
Legal basis
The Equalisation of Pension Rights on Divorce Act of 1995 governs this. Article 2 gives the right to half the retirement pension accrued during the relationship. Article 3(2) provides that the pension provider pays the former partner directly only if the divorce is notified to the provider within two years using the prescribed form; after that the right survives, but must be collected from the pension holder personally. Article 5 allows conversion, turning the share into an independent pension right of the former partner’s own. The special partner’s pension follows from Article 57 of the Pensions Act. The Division of Pensions on Divorce Bill 2022, which would make conversion the default, had not been enacted by mid-2026; the intended date of entry into force is 1 January 2028.
How it works in practice
Parties may depart from the statutory rule in a prenuptial agreement or in the divorce covenant: a different key, a different period, or complete exclusion. Any departure must be in writing and notified to the provider. Conversion appeals to those who want a clean break, but has a downside: on the former partner’s death the entitlement does not revert to the pension holder.
Where it goes wrong
The two-year deadline is missed as a matter of routine, leaving the former partner to chase payment for years. A second error is overlooking pension held in a company or accrued abroad, which does not surface automatically. Third, where equalisation is excluded, the special partner’s pension with its own regime is rarely considered.
Related terms
Equalisation belongs with the divorce covenant, the community of property and spousal maintenance.
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