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Pensions on divorce is a complex area of family law, and this becomes even more complex when there is an international element.  A pension can often be the most valuable thing a person owns, so it is vital to seek specialist advice at the earliest possible opportunity.

There are typically two key issues to consider with international divorce and pensions. Firstly, whether it is possible to obtain a pension sharing order or pension attachment order against a foreign pension and secondly, how you might be able to enforce an overseas Pension Sharing Order or Pension Attachment against a pension held in the UK.

In this article, we look at each of these issues, in turn, to help you understand how your pension might be treated in international divorce.

Can I get a court order against a foreign pension?

There are many reasons that your spouse may have set up an overseas pension. Foreign pensions can offer many benefits, including tax advantages. However, when it comes to divorce, it is essential that you consider the terms of any overseas pension scheme where you or your spouse hold a pension. In some cases, an overseas pension will simply be treated as an additional amount of capital, which may be dealt with or distributed by other means rather than a pension attachment or sharing order.

It is possible to obtain a pension sharing order or a pension attachment order against a pension held overseas; however, it may be challenging to implement such an order. In general, courts in England & Wales will only make the decision to make a pension attachment order against a foreign pension where they are confident that those managing the foreign pension will be cooperative in implementing such an order.

As a result, it is essential that if you are seeking to benefit from your spouse’s foreign pension, you take steps to gain confirmation of such cooperation from the pension scheme managers as early in the divorce process as possible.

Can I enforce a foreign pension sharing order in the UK?

If your spouse has a pension with a UK provider, but you want to get divorced abroad, you will need to consider whether you can enforce a pension sharing order from a foreign court in the UK. Courts in England and Wales will not enforce  a pension sharing order made by a foreign Court against a UK pension scheme automatically.  If you are in this situation, you should seek specialist legal advice.

You may be able to obtain a pension sharing order or pension attachment order that will be effective in England & Wales to make an application after an overseas divorce. You will only be able to make an application if one of the parties to the overseas divorce is habitually resident in England & Wales or domiciled in England & Wales at the time of making the application. If only one party to the divorce has a connection to the UK, and they are the person who holds the UK pension, they may seek to argue that they are not domiciled or habitually resident in the UK in order to avoid the Pension Order being enforced.

 It is also important to note that if a foreign pension order has been made in your favour, the UK Court will not enforce the order if you have remarried. If you are looking to remarry, you should attempt to enforce any pension order in the UK before you do so.

What happens if I am unable to enforce a foreign pension order?

If you believe you will be unable to enforce a foreign Pension Order, you may need to find an alternative way to deal with pensions in an  international divorce. One possible solution would be to transfer the pension to another overseas pension where the Pension Order made by a foreign court would be enforceable. For specialist advice, please contact our international divorce lawyers.

Contact our International Divorce Solicitors based in Manchester, London and Birmingham

Our specialist international divorce lawyers will help you every step of the way – we can advise you on all matters related to international divorce and financial settlement.  Our divorce team are experienced in divorce proceedings with an international element and financial settlements and can guide you through this difficult time.

Our UK expert Divorce Solicitors are ready to help. To arrange an initial consultation about divorce, call our specialist Divorce Solicitors on 0330 107 0107 or request a call back.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.