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Why Timing Matters: The Risks of Final Orders and Pension Sharing After Divorce

In the aftermath of a divorce, it’s understandable that people are eager to tie up loose ends and move on with their lives as fast as possible. Perhaps one of the biggest milestones is the Final Order (previously known as the Decree Absolute), which officially ends the marriage. However, when a Pension Sharing Order is part of the financial settlement, applying for a Final Order too soon can have serious unintended consequences, and may even render the pension sharing provision ineffective.

A Pension Sharing Order is a court order that instructs a pension provider to divide one party’s pension and allocate a share of it to the other party. Under the Matrimonial Causes Act 1973, a Pension Sharing Order takes effect once the Final Order has been granted, or 28 days from the date of the Pension Sharing Order, whichever is later.

The Pension Sharing Order is therefore not “live” until the 28-day period has elapsed. If you obtain the Final Order before this window has passed, and the pension holder passes away, the non-pension-owning spouse may lose out on their entitlement entirely.

Let’s look at an example timeline:

  1. The Court grants a Pension Sharing Order that sees Stevie receive 50% of Lindsey’s pension.
  2. Seven days later, Stevie applies for the Final Order of divorce, which is granted on day ten.
  3. On day twelve, Lindsey unexpectedly passes away.

As 28 days have not elapsed since the Court made the Pension Sharing Order, it has not yet taken effect. This means that Stevie cannot rely on the Court Order to obtain an interest in Lindsey’s pension. As the Final Order has been granted, the parties are also officially divorced. This means that Stevie has also lost any widow’s rights or benefits that she might have had under Lindsey’s pension.

If Stevie had waited until 28 days had passed before applying for the Final Order, she would have still been married to Lindsey when he died on day twelve, meaning she would have been protected by the spousal benefits of his pension scheme, despite the fact that the Pension Sharing Order had not yet taken effect.

In family law, timing can be everything. The seemingly small detail of waiting 28 days before applying for a Final Order is actually a crucial safeguard that can protect you from a landslide of risk, and decades of future pension income. Don’t rush the final step – the short delay can make a lifelong difference.