A pension on divorce in Scotland is counted only for the years of the marriage, up to the relevant date, rather than for the whole pot.

If you are divorcing or dissolving a civil partnership in Scotland, the pension rules differ from those in England and Wales. Scottish law looks at what was built up during the marriage, not at the pension as a whole. The legal steps come first. If retirement income worries you afterwards, an adviser who is FCA-authorised could phone you back free of charge, and all it takes is the form on this page.

For the England and Wales route see pensions on divorce; the State Pension has its own page. Here the focus is Scotland, with Northern Ireland's differences in a short section near the end.

What part of a pension counts in a Scottish divorce?

Only the share of a pension that belongs to the marriage years is treated as matrimonial property. Section 10 of the Family Law (Scotland) Act 1985 puts into the pot the proportion of any pension benefits that either person "has or may have" which is referable to the marriage, up to the relevant date. That reaches a pension not yet in payment, and benefits payable on a death.

The net value is then shared fairly, which the Act defines as "equally or in such other proportions as are justified by special circumstances". Pension built up before you married, or after the relevant date, sits outside the pot.

How is the relevant date worked out?

The relevant date is whichever comes first: the day you stopped living as a couple, or the day the divorce summons was served. The Act adds a rule for couples who get back together. A spell apart is ignored if you resumed living together, unless you had been apart for a continuous 90 days or more and then lived together again for less than 90 days in all.

Which date applies decides how many years of pension are counted, so it is worth confirming with a solicitor early.

Valuing the pension: the cash equivalent and the marriage years

Each pension provider can supply a cash equivalent transfer value (CETV) for divorce. If you live in Scotland, MoneyHelper says, the provider needs to know how long the marriage or civil partnership lasted to calculate the CETV. For a pension built up over ten years of which only five fell within the marriage, MoneyHelper says "only half the value will usually count".

Expect the figure to take as long as three months, says MoneyHelper, and to be valid in court for up to a year after it is issued. Providers may charge for a repeat request inside 12 months, or when the pension is already being paid. How to ask is in getting a pension valuation for divorce, and for large or unusual pensions a pension on divorce expert can go deeper.

A CETV puts a cash value on a pension today; the income your share might give in retirement is a different question, so an adviser who is FCA-authorised could set yours beside your other income if you request a call-back.

Pension sharing, lump sum orders and offsetting

MoneyHelper says you can usually use one or more of three options.

  • Pension sharing. Section 8 allows a pension sharing order. MoneyHelper's guide says that in Scotland you decide on a fixed amount, although section 27 of the Act lets the order specify either a percentage value or an amount to be transferred. What is a pension sharing order explains the mechanics.
  • Pension lump sum orders. Scottish earmarking is narrower than elsewhere. Section 12A lets a court that orders a capital sum require the person responsible for the pension to hand over part or all of a lump sum when it falls due, including in some cases a lump sum payable on death, and MoneyHelper says Scottish attachment orders can cover only lump sums. Sharing compared with earmarking sets out the difference.
  • Offsetting. One person keeps the pension and the other takes other assets of similar value, such as a bigger share of the home. Pension offsetting has the detail.

Within one set of proceedings the court is barred from combining sharing with a section 12A order against the same arrangement. A Scottish solicitor can advise which route suits your pension and your other assets.

Timescales for sharing a pension in Scotland

Timing depends on how quickly you agree and how fast providers reply. MoneyHelper gives markers: up to three months for the CETV; then, once the agreement or order is binding, a Scottish deadline of two months to send the provider all the documents it needs, "or you might have to start the process again"; and four months for the provider to act once it has the information and fees.

A pension sharing agreement can often be made binding without a judge. MoneyHelper says a written copy can be added to the Register of Deeds, known as a qualifying agreement, while a pension lump sum order needs a court. See how long a pension sharing order takes and what it costs.

Getting a solicitor, legal aid and free guidance

Valuing and splitting pensions is complicated, so MoneyHelper suggests paying for legal advice from a solicitor. A mediator, it says, is usually cheaper but cannot give advice. Legal aid may help: mygov.scot lists divorce among civil cases it can cover, but you usually need to show you cannot afford a solicitor, and you may have to contribute or repay later. You apply through a solicitor who does legal aid work.

Divorce can be painful and, for some, unsafe. If you are experiencing domestic abuse, Scotland's Domestic Abuse and Forced Marriage Helpline is open 24 hours a day on 0800 027 1234. In immediate danger, phone 999.

MoneyHelper also offers a free appointment on pensions and divorce, giving impartial guidance on your options. The Scottish Courts and Tribunals Service website, linked from mygov.scot, explains the court process itself.

Pension sharing and attachment orders in Northern Ireland

Northern Ireland is not covered by the Scottish rules above. MoneyHelper groups it with England and Wales: an attachment order there can be shaped to cover, for example, tax-free lump sums, death benefits or pension built up after the divorce, and an agreement needs court approval to be legally binding. The guide describes pension sharing outside Scotland as based on an agreed percentage.

For the court process, MoneyHelper points to the Department of Justice for personal petitioners and nidirect for defending a petition. A Northern Ireland solicitor can say how this applies to you.

Frequently asked questions

Does pension built up before we married count in Scotland?

Not in the main. Only the proportion referable to the marriage, up to the relevant date, is matrimonial property.

Can a pension I have not started drawing be included?

Yes. Section 10 covers benefits a person "has or may have", so a pension still to be paid is counted for the marriage years.

Do I need a court to share a pension in Scotland?

Not always. MoneyHelper says a pension sharing order can often be finalised as a qualifying agreement registered in the Register of Deeds, while a pension lump sum order needs the court.

What if we separated, then lived together again?

Section 10 ignores a break in living together if you resumed, except where the 90-day tests described above are met. A solicitor can say which date applies to your own timeline.

Is a Scottish pension sharing order a percentage?

It can be, or it can name a sum. Section 27 of the 1985 Act defines a pension sharing order as one specifying either the percentage value or the amount to be transferred, and MoneyHelper's guide describes Scottish couples deciding on a fixed amount.

Whichever order you end up with, working out the income it leaves you is a separate job. This page's short form begins it: an FCA-authorised adviser calls you back without charge.

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