Chapter 3 of 6 · Money and the home · 3 of 5
Pension adjustment orders in Ireland: how a court splits a pension on separation or divorce
Last verified2026-10-07A pension adjustment order is the only way to split a pension in Ireland and only a court can make one, on judicial separation or divorce. One order per pension; the State pension cannot be split.
This guide covers the Republic of Ireland.
Pensions are often the second most valuable asset in an Irish marriage after the home, and sometimes the first. They are also the asset most often left undealt with, because a pension cannot be split by agreement: only a court order can do it. This guide explains what a pension adjustment order is, who can get one, what it can and cannot reach, when an actuarial valuation is worth paying for, and what happens after the judge signs.
What a pension adjustment order is
A pension adjustment order (PAO) is a court order directing the trustees of a pension scheme to pay part of a member's pension benefit to that member's spouse or former spouse, or to a person acting for a dependent child. The power comes from section 17 of the Family Law (Divorce) Act 1996 on divorce and section 12 of the Family Law Act 1995 on judicial separation. The Pensions Authority publishes detailed guidance notes for trustees on how the orders work. The order does not usually hand over cash today; it designates a share of a benefit that will be paid in the future.
Two kinds of benefit the court can adjust
| Order | What it covers | Time limit to apply |
|---|---|---|
| Retirement benefit order | The pension and lump sum the member will receive on retirement. The court specifies the period of service to be counted and the percentage of the benefit earned in that period | At the time of the decree or any time afterwards during the member's lifetime, provided the applicant has not remarried |
| Contingent benefit order | The death-in-service benefit payable if the member dies before retiring while still in the scheme | Not more than one year after the decree |
The one-year limit on contingent benefit orders catches people out. If you want the death-in-service cover protected for you or the children, it has to be dealt with at or soon after the decree.
Who can apply
Either spouse can apply: the member whose pension it is, or the non-member spouse. A person acting on behalf of a dependent child can also apply. The court cannot make a pension adjustment order in favour of a spouse who has remarried, and the order must be made while the member is alive.
In deciding whether to make an order, and on what terms, the court applies the same section 20 test as for every other financial order: proper provision for both spouses and the children, weighing the twelve factors described in proper provision: how Irish courts divide assets. Factor (k), the value of any benefit such as a pension that a spouse will lose because of the divorce, is written into the Act for exactly this situation.
Why a separation agreement cannot do this
A separation agreement is a contract between two spouses. Pension scheme trustees are not party to it and are bound by the scheme rules and the Pensions Act, not by your contract. Only a court order under the family law Acts can direct trustees to pay a benefit to someone who is not the member. A separation agreement can record that pensions have been taken into account in dividing other assets, or that a spouse will apply for a PAO when proceedings are brought, but on its own it leaves the pension exactly where it was. This is one of the main reasons couples who have separated by agreement still go on to judicial separation or divorce.
Notice to the trustees
Whoever applies for a PAO must give notice to the trustees of the scheme and provide the information they ask for, and the court must have regard to any representations the trustees make. For a PRSA, personal pension or buy-out bond, "trustees" means the provider administering the contract, usually a life assurance company. The divorce documents guide lists the notice to trustees alongside the civil bill and affidavit of means.
Defined benefit, defined contribution, PRSA, public service
| Type of pension | How the value is known | Valuation usually needed? |
|---|---|---|
| Occupational defined benefit (pension based on salary and years of service) | There is no pot. The benefit is a promise, and its cash value depends on assumptions about salary, service, life expectancy and interest rates | Usually yes |
| Occupational defined contribution | An invested pot with a statement value | Usually no; the current statement value is the starting point |
| PRSA or personal pension | An invested pot with a statement value | Usually no |
| Public service pension | Defined benefit, typically unfunded and governed by statute, with its own rules on how an order is implemented | Usually yes |
| State pension (contributory or non-contributory) | Not a scheme the order can reach | Not applicable |
The Pensions Authority guidance notes that the trustees must give the non-member spouse basic scheme information on request, including the actuarial value of the member's benefit as at a date the trustees specify, calculated on a basis consistent with Society of Actuaries in Ireland guidelines. The trustees can charge for this, and the costs of complying with an order are borne by the spouses in the proportions the court decides, or equally if it does not.
When an actuarial valuation is worth getting
The trustees' figure is a scheme-basis value and not always the figure you would use to bargain. An independent actuary can show what a given percentage over a given period is worth today and compare it with the home or savings you might take instead. A valuation tends to be worth the fee where:
- the pension is defined benefit or public service and the member has long service;
- the member is within ten or fifteen years of retirement;
- one spouse is proposing to keep the home and the other to keep the pension, so the two need to be compared on a like-for-like basis;
- the scheme is underfunded, because the Pensions Authority guidance allows the actuary to reduce a transfer amount to reflect that.
A small defined contribution pot rarely needs one; the statement value tells you what is there.
What the court decides
The court sets the relevant period (often from the marriage, or from when the member joined the scheme, to the decree) and the percentage of the benefit earned in that period that is designated for the other spouse. There is no fixed percentage. The Pensions Authority uses 50 per cent of benefits earned during the marriage as an example of an order a court could make, and also describes the "nil order" practice: where the parties agree that the non-member spouse takes nothing, the court designates a token fraction over a token period so that an order exists for the scheme and the pension is formally dealt with. Courts also take pensions into account through other orders, such as a larger share of the home, where that is enough.
What happens after the order
Once an order is made the trustees must tell the person named in it the amount and nature of the designated benefit, and the options for a transfer amount in place of it. Two routes follow:
- A separate benefit in the scheme. The designated share stays in the scheme as a benefit for the non-member spouse, payable when the member's benefit comes into payment.
- A transfer. The non-member spouse can ask for the value of the designated benefit to be transferred to another pension arrangement in their own name, and in some circumstances the trustees can initiate a transfer themselves. After a transfer the trustees must notify the person named in the order and the court office.
If the member dies before retiring, the trustees must pay the actuarial value of the designated benefit to the non-member spouse within three months. Keep the trustees informed of your address: the guidance says they are not liable for loss where the person named in the order has not kept in contact.
Where this leaves you
Before you negotiate anything else, list every pension either of you has and find out what type each one is. That tells you whether you are dealing with a statement value or a promise that needs valuing. The maintenance and pensions tool screens each pension and tells you whether a valuation is likely to be worth the fee. Because only a court can make the order and the drafting has to satisfy the trustees, the solicitor page is worth reading even if you plan to agree everything else between you.
Frequently asked questions
Can we split a pension in a separation agreement?
No. Only a court can make a pension adjustment order, under section 12 of the Family Law Act 1995 on judicial separation or section 17 of the Family Law (Divorce) Act 1996 on divorce. A separation agreement can record that one spouse will seek an order later, or can balance the pension against other assets, but it cannot itself direct trustees to pay anything to the other spouse.
Do I need a separate order for each pension?
Yes. The Courts Service says "A pension adjustment order is needed for each pension that you might have", and the Pensions Authority guidance says a separate order must be sought for each scheme. A person with an occupational scheme, an old PRSA and a buy-out bond needs three orders.
What percentage of the pension does the other spouse get?
There is no set percentage. The court decides the relevant period of the member's service and the proportion of the benefit earned in that period to be designated for the other spouse, as part of proper provision under section 20. The Pensions Authority gives 50 per cent of benefits earned during the marriage as an example of what a court could order, not as a rule.
Can the State pension be split by a pension adjustment order?
No. A pension adjustment order can only be made against a pension scheme as defined in the family law legislation: occupational schemes, PRSAs, personal pensions, buy-out bonds and similar arrangements. The State pension under the Social Welfare Acts is not such a scheme. The court can still take it into account as income when deciding other orders.
What happens to the pension after the order is made?
The trustees must tell the person named in the order the amount and nature of the benefit designated for them, and the options for taking a transfer amount. The benefit is either kept in the scheme as a separate benefit for the non-member spouse or transferred to another pension arrangement in that spouse's name. The trustees' costs are shared between the spouses as the court directs, or equally if it does not say.