Pension compensation sharing orders MCA 1973 s. 24E
MCA 1973 s. 24E allows courts to share Pension Protection Fund compensation on divorce, taking effect once the divorce order is made final.
24E On making a divorce or nullity of marriage order or at any time after making such an order (whether before or after the order is made final), the court may, on an application made under this section, make a pension compensation sharing order in relation to the marriage. A pension compensation sharing order under this section is not to take effect unless the divorce or nullity of marriage order on or after which it is made has been made final. A pension compensation sharing order under this section may not be made in relation to rights to PPF compensation that— are the subject of pension attachment, derive from rights under a pension scheme that were the subject of pension sharing between the parties to the marriage, are the subject of pension compensation attachment, or are or have been the subject of pension compensation sharing between the parties to the marriage. For the purposes of subsection (3)(a), rights to PPF compensation “are the subject of pension attachment” if any of the following three conditions is met. The first condition is that— the rights derive from rights under a pension scheme in relation to which an order was made under section 23 imposing a requirement by virtue of section 25B(4), and that order, as modified under section 25E(3), remains in force. The second condition is that— the rights derive from rights under a pension scheme in relation to which an order was made under section 23 imposing a requirement by virtue of section 25B(7), and that order— has been complied with, or has not been complied with and, as modified under section 25E(5), remains in force. The third condition is that— the rights derive from rights under a pension scheme in relation to which an order was made under section 23 imposing a requirement by virtue of section 25C, and that order remains in force. For the purposes of subsection (3)(b), rights under a pension scheme “were the subject of pension sharing between the parties to the marriage” if the rights were at any time the subject of a pension sharing order in relation to the marriage or a previous marriage between the same parties. For the purposes of subsection (3)(c), rights to PPF compensation “are the subject of pension compensation attachment” if there is in force a requirement imposed by virtue of section 25F relating to them. For the purposes of subsection (3)(d), rights to PPF compensation “are or have been the subject of pension compensation sharing between the parties to the marriage” if they are or have ever been the subject of a pension compensation sharing order in relation to the marriage or a previous marriage between the same parties. See also section 52A (interpretation of certain references to divorce orders, nullity of marriage orders and judicial separation orders).
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Section 24E enables the court in divorce or nullity proceedings to make a pension compensation sharing order regarding Pension Protection Fund (PPF) compensation rights. The court can make the order when granting the divorce or nullity order or at any point afterward, but the sharing order only takes effect once the divorce or nullity order is made final.
This provision places strict limits on when compensation rights can be shared. A pension compensation sharing order cannot be made if the underlying pension or compensation rights are already committed under existing legal arrangements between the same parties.
Specifically, rights cannot be shared if they are already subject to pension attachment orders under section 23 (including orders under section 25B(4), section 25B(7), or section 25C), or if they are subject to attachment under section 25F. It also prohibits sharing if the rights were already subject to a pension sharing or pension compensation sharing order between the same spouses.
When it applies
- Applying to split a spouse's Pension Protection Fund compensation rights during financial remedy proceedings following divorce.
- Checking whether a pension compensation sharing order granted alongside a conditional divorce order has legally taken effect before the final order.
- Determining if PPF compensation derived from an insolvent company pension scheme can be legally divided between divorcing spouses.
What this section does not say
- Sharing standard active or deferred pension scheme rights that have not entered the Pension Protection Fund.
- Attaching ongoing payments directly from PPF compensation without transferring a capital share, which is governed by section 25F.
- Re-splitting pension compensation rights that were already divided in a previous divorce between the same two parties.
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This page reproduces the text of MCA 1973 s. 24E in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.