What is a pension sharing order (PSO)?

A PSO is a court order that transfers a specified percentage of one spouse's pension to the other as a clean break settlement. The pension credit creates an independent pension right for the recipient, separate from the original member's pension.

How is a DB pension shared on divorce?

The court orders a percentage of the CETV (Cash Equivalent Transfer Value) to be transferred. The scheme gives the pension credit holder the option to take a transferred pension or pension credit within the scheme if it accepts external transfers.

Does pension sharing affect the annual allowance?

Receiving a pension credit from a PSO does not trigger MPAA. Making contributions to a new pension after receiving a pension credit is allowed up to the full annual allowance (£60,000) unless drawdown has been triggered separately.

UK Pension Sharing in Divorce Calculator

Calculate UK pension sharing on divorce. Pension sharing order (PSO) transfers a percentage of CETV to ex-spouse. DB schemes: trustees calculate pension credit. MPAA and annual allowance implications. Debit member rules.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate UK pension sharing on divorce. Pension sharing order (PSO) transfers a percentage of CETV to ex-spouse. DB schemes: trustees calculate pension credit. MPAA and annual allowance implications. Debit member rules. Use the uk pension sharing divorce result to inform your calculation.

Related Calculators

Pension QDRO Divorce

Finance & Accounting

DB Pension Lump Sum vs Annuity