Pensions: lump sums on death MCA 1973 s. 25C
Court's power under s.23 to order lump sum includes death lump sum from pension to other spouse. Excludes pension sharing orders.
The power of the court under section 23 above to order a party to a marriage to pay a lump sum to the other party includes, where the benefits which the party with pension rights has or is likely to have under a pension arrangement include any lump sum payable in respect of his death, power to make any of the following provision by the order. The court may— if the person responsible for the pension arrangement in question has power to determine the person to whom the sum, or any part of it, is to be paid, require him to pay the whole or part of that sum, when it becomes due, to the other party, if the party with pension rights has power to nominate the person to whom the sum, or any part of it, is to be paid, require the party with pension rights to nominate the other party in respect of the whole or part of that sum, in any other case, require the person responsible for the pension arrangement in question to pay the whole or part of that sum, when it becomes due, for the benefit of the other party instead of to the person to whom, apart from the order, it would be paid. Any payment by the person responsible for the arrangement under an order made under section 23 above by virtue of this section shall discharge so much of his liability in respect of the party with pension rights as corresponds to the amount of the payment. The powers conferred by this section may not be exercised in relation to a pension arrangement which— is the subject of a pension sharing order in relation to the marriage, or has been the subject of pension sharing between the parties to the marriage.
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
This section gives the court extra powers when it makes a lump sum order under section 23. It applies only if the pension arrangement includes a lump sum that is payable on the death of the spouse who holds the pension. The court can make that lump sum go to the other spouse instead of whoever would normally get it.
There are three ways the court can do this. If the pension scheme decides who gets the lump sum, the court can order the scheme to pay it to the other spouse. If the pension holder can nominate someone, the court can force them to nominate the other spouse. In any other case, the court can order the scheme to pay the lump sum for the benefit of the other spouse.
Any payment made under such an order fully discharges the scheme's liability for that amount. The court cannot use this power if the pension has already been shared by a pension sharing order between the spouses.
When it applies
- A divorcing husband has a pension that includes a lump sum payable on his death; his wife wants that lump sum to be paid to her instead of his new partner.
- A wife has a pension with a death lump sum; her husband argues he should receive it.
- The pension scheme has discretion over who gets the death lump sum; the court orders the scheme to pay it to the ex-spouse.
- The pension holder has the power to nominate; the court requires them to nominate the ex-spouse.
- A divorcing couple's pension arrangement includes a lump sum on death, and the court is deciding how to allocate it.
What this section does not say
- This section does not cover the court's power to order a lump sum from the pension while the pension holder is alive (that is dealt with under s.25B).
- It does not apply to pension sharing orders (covered by s.24B).
- It does not cover lump sums that are not payable on death, such as retirement lump sums.
- It does not address how to value the pension or the lump sum.
That's the law. Now let's settle your problem.
Say what is happening. A neutral mediator hears your side and the other party's, and walks you both to a written agreement. In the advanced settings you can ask for the decision to be reasoned on the Acts of Parliament that apply in England and Wales.
Or open a session directly and invite the other party.
We copy this text from the official publisher and re-check it against that source on every page load, but we cannot guarantee it is complete, current or free of error, and we accept no liability for any reliance on it. An amendment can take effect before a consolidation catches up. The publisher's own copy is linked below; where the two differ, it is the official one that counts.
This page reproduces the text of MCA 1973 s. 25C 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.