Pension Sharing on Divorce Calculator
Calculate pension division in divorce. Compare sharing orders with different splits.
Last updated: April 2026 · Source: GOV.UK
Person 1
£125,000.00
+ SP: £136,960.00 total
Person 2
£125,000.00
+ SP: £134,360.00 total
Combined pensions: £250,000.00. For equal split: Person 1 → Person 2 transfers £75,000.00.
Pension Sharing Order (PSO) is a court order. Pension Offsetting (keeping pensions, adjusting other assets) is an alternative. State Pension cannot be shared but can be considered for offsetting.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Pension sharing on divorce uses the Cash Equivalent Transfer Value (CETV) as the basis for division. The CETV represents the present-day capital value of future pension benefits and is calculated by the pension scheme's actuary using discount rates, mortality assumptions, and benefit projections. For defined benefit schemes, the CETV can be significantly lower than the actuarial value of the income stream, making fair division complex.
A pension sharing order specifies a percentage of the CETV to be transferred to the ex-spouse, creating a pension credit in their name. The receiving spouse either joins the same scheme (internal transfer) or transfers the credit to their own pension arrangement (external transfer). The percentage split need not be 50/50; courts consider the length of marriage, other assets, and each party's needs. Pension offsetting is an alternative where pension value is traded against other assets like the family home.
Earmarking (or attachment orders) differs from pension sharing: the pension stays with the scheme member, but the court directs a portion of payments to the ex-spouse when benefits are drawn. The disadvantage is dependency on the member's decisions about when to retire. Pension sharing provides a clean break. For defined benefit pensions, the CETV may not reflect the true income value, so pension-on-pension comparison using the Pension Advisory Group methodology is often more equitable.
Pension sharing order on a £400,000 CETV
- Husband's pension CETV: £400,000 (defined benefit scheme)
- Court orders 40% pension sharing order to wife
- Pension credit to wife: £400,000 x 40% = £160,000
- Wife transfers £160,000 externally to her SIPP
- Husband's remaining CETV: £240,000 (scheme recalculates reduced benefits accordingly)
Source: GOV.UK
Frequently Asked Questions
- What does the Pension Sharing on Divorce Calculator do?
- Calculate pension division in divorce. Compare sharing orders with different splits. All calculations are performed in your browser using official UK rates and thresholds.
- Are these figures guaranteed?
- No. Pension projections are estimates based on assumed growth rates and current contribution levels. Actual returns depend on investment performance, fees and future policy changes.
- What is the pension annual allowance?
- The pension annual allowance for 2025/26 is £60,000. This is the maximum you can contribute (including employer contributions) and receive tax relief. The allowance is tapered for high earners.