Divorce and remedy
At a glance
If you are affected by remedy and have a pension sharing order (PSO) from a divorce that came into effect on or after 1 April 2015, the value of the pension used to calculate the order may need to be recalculated. Your pension debit will be adjusted depending on your remedy choice, but the ex-spouse’s pension credit is always based on the higher of the legacy or reformed scheme value, so their award won’t be reduced or cost you extra. Any under or overpayments for you or your ex-spouse will be explained in your remediable service statement.
You can read general information about divorce and your pension in the divorce section of this website.
Considering remedy
Why does remedy affect divorce cases?
The value of pension benefits can sometimes be included in a divorce settlement. Where this is the case, the value of pension benefits is calculated. This value is known as a cash equivalent transfer value (CETV).
The court order itself does not change. The percentage set by the court stays exactly the same.
However, pension administrators must rework the order using the revised pension values. This means recalculating the CETV and updating the pension credit for the ex spouse and the pension debit for the member so that they match the corrected benefits.
Divorce
After 1 October 2023
Any new divorce cases after 1 October 2023 use the higher of the legacy or reformed scheme CETVs from the start.
This means the ex-spouse’s pension credit is automatically based on the better value, and the member’s debit depends on the choice of remedy benefits that they make. It avoids recalculating PSOs later due to remedy changes.
Where a divorce takes place after the member has already retired and made their choice for remedy benefits, the CETV will reflect the choice the member has made.