In divorce proceedings, which statement best describes the treatment of pension assets?

• A. Pension assets may be subject to sharing or earmarking orders, potentially dividing entitlements between spouses.
• B. Pension assets are always kept by the member with no division.
• C. Divorce nullifies any pension rights.
• D. Pension assets are automatically transferred to the ex-spouse.

Answer: (A)

Pension assets in divorce are treated as part of the matrimonial property and can be divided using specific orders. There are two main tools: pension sharing orders, which allocate a portion of one spouse’s pension rights to the other, and earmarking orders, which reserve part of future pension payments for the ex-spouse. This means the ex-spouse can receive a share of the pension built up during the marriage, either as a present entitlement or as future payments, depending on the order. Divorce does not automatically transfer or nullify pension rights, and pension assets aren’t automatically kept entirely by the member. The described approach—sharing or earmarking entitlements—best describes how pension assets are treated in divorce.