Civil Partnership Act 2004 (c. 33)

(The document as of February, 2008)

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8 (1) If a property adjustment order is made on or after making a dissolution or nullity order, neither the property adjustment order nor any settlement made under it takes effect unless the dissolution or nullity order has been made final.

(2) This paragraph does not affect the power to give a direction under paragraph 76 (settlement of instrument by conveyancing counsel).

Restrictions on making property adjustment orders

9 The power to make a property adjustment order under paragraph 7(1)(a) is subject to paragraph 49(1) and (5) (restrictions on making orders in favour of children who have reached 18).

Part 3 Sale of property orders

Circumstances in which sale of property orders may be made

10 (1) The court may make a sale of property order--

(a) on making --

(i) under Part 1, a secured periodical payments order or an order for the payment of a lump sum, or

(ii) a property adjustment order, or

(b) at any time afterwards.

(2) In this Schedule "sale of property order" means a sale of property order under this Part.

Sale of property orders

11 (1) A sale of property order is an order for the sale of such property as may be specified, being property in which, or in the proceeds of sale of which, either or both of the civil partners has or have a beneficial interest, either in possession or reversion.

(2) A sale of property order may contain such consequential or supplementary provisions as the court thinks fit.

(3) A sale of property order may in particular include--

(a) provision requiring the making of a payment out of the proceeds of sale of the property to which the order relates, and

(b) provision requiring any property to which the order relates to be offered for sale to a specified person, or class of persons.

(4) "Specified" means specified in the order.

When sale of property orders may take effect

12 (1) If a sale of property order is made on or after the making of a dissolution or nullity order, it does not take effect unless the dissolution or nullity order has been made final.

(2) Where a sale of property order is made, the court may direct that--

(a) the order, or

(b) such provision of it as the court may specify,

is not to take effect until the occurrence of an event specified by the court or the end of a period so specified.

When sale of property orders cease to have effect

13 If a sale of property order contains a provision requiring the proceeds of sale of the property to which the order relates to be used to secure periodical payments to a civil partner, the order ceases to have effect--

(a) on the death of the civil partner, or

(b) on the formation of a subsequent civil partnership or marriage by the civil partner.

Protection of third parties

14 (1) Sub-paragraphs (2) and (3) apply if--

(a) a civil partner has a beneficial interest in any property, or in the proceeds of sale of any property, and

(b) another person ("A") who is not the other civil partner also has a beneficial interest in the property or the proceeds.

(2) Before deciding whether to make a sale of property order in relation to the property, the court must give A an opportunity to make representations with respect to the order.

(3) Any representations made by A are included among the circumstances to which the court is required to have regard under paragraph 20.

Part 4 Pension sharing orders on or after dissolution or nullity order

Circumstances in which pension sharing orders may be made

15 (1) The court may make a pension sharing order--

(a) on making a dissolution or nullity order, or

(b) at any time afterwards.

(2) In this Schedule "pension sharing order" means a pension sharing order under this Part.

Pension sharing orders

16 (1) A pension sharing order is an order which--

(a) provides that one civil partner's--

(i) shareable rights under a specified pension arrangement, or

(ii) shareable state scheme rights,

are to be subject to pension sharing for the benefit of the other civil partner, and

(b) specifies the percentage value to be transferred.

(2) Shareable rights under a pension arrangement are rights in relation to which pension sharing is available under--

(a) Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 (c. 30), or

(b) corresponding Northern Ireland legislation.

(3) Shareable state scheme rights are rights in relation to which pension sharing is available under--

(a) Chapter 2 of Part 4 of the 1999 Act, or

(b) corresponding Northern Ireland legislation.

(4) In this Part "pension arrangement" means--

(a) an occupational pension scheme,

(b) a personal pension scheme,

(d) an annuity or insurance policy purchased, or transferred, for the purpose of giving effect to rights under--

(i) an occupational pension scheme, or

(ii) a personal pension scheme, and

(e) an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit under--

(i) section 29(1)(b) of the 1999 Act, or

(ii) corresponding Northern Ireland legislation.

(5) In sub-paragraph (4)--

"occupational pension scheme" has the same meaning as in the Pension Schemes Act 1993 (c. 48);
"personal pension scheme" has the same meaning as in the 1993 Act;
"retirement annuity contract" means a contract or scheme approved under Chapter 3 of Part 14 of the Income and Corporation Taxes Act 1988 (c. 1).

Pension sharing orders: apportionment of charges

17 If a pension sharing order relates to rights under a pension arrangement, the court may include in the order provision about the apportionment between the civil partners of any charge under--

(a) section 41 of the 1999 Act (charges in respect of pension sharing costs), or

(b) corresponding Northern Ireland legislation.

Restrictions on making of pension sharing orders

18 (1) A pension sharing order may not be made in relation to a pension arrangement which--

(a) is the subject of a pension sharing order in relation to the civil partnership, or

(b) has been the subject of pension sharing between the civil partners.

(2) A pension sharing order may not be made in relation to shareable state scheme rights if--

(a) such rights are the subject of a pension sharing order in relation to the civil partnership, or

(b) such rights have been the subject of pension sharing between the civil partners.

(3) A pension sharing order may not be made in relation to the rights of a person under a pension arrangement if there is in force a requirement imposed by virtue of Part 6 which relates to benefits or future benefits to which that person is entitled under the pension arrangement.

When pension sharing orders may take effect

19 (1) A pension sharing order is not to take effect unless the dissolution or nullity order on or after which it is made has been made final.

(2) No pension sharing order may be made so as to take effect before the end of such period after the making of the order as may be prescribed by regulations made by the Lord Chancellor.

(3) The power to make regulations under sub-paragraph (2) is exercisable by statutory instrument which is subject to annulment in pursuance of a resolution of either House of Parliament.

Part 5 Matters to which court is to have regard under Parts 1 to 4

General

20 The court in deciding--

(a) whether to exercise its powers under--

(i) Part 1 (financial provision on dissolution etc.),

(ii) Part 2 (property adjustment orders),

(iii) Part 3 (sale of property orders), or

(iv) any provision of Part 4 (pension sharing orders) other than paragraph 17 (apportionment of charges), and

(b) if so, in what way,

must have regard to all the circumstances of the case, giving first consideration to the welfare, while under 18, of any child of the family who has not reached 18.

Particular matters to be taken into account when exercising powers in relation to civil partners

21 (1) This paragraph applies to the exercise by the court in relation to a civil partner of its powers under--

(a) Part 1 (financial provision on dissolution etc.) by virtue of paragraph 2(1)(a), (b) or (c),

(b) Part 2 (property adjustment orders),

(d) Part 4 (pension sharing orders).

(2) The court must in particular have regard to--

(a) the income, earning capacity, property and other financial resources which each civil partner--

(i) has, or

(ii) is likely to have in the foreseeable future,

including, in the case of earning capacity, any increase in that capacity which it would in the opinion of the court be reasonable to expect a civil partner in the civil partnership to take steps to acquire;

(b) the financial needs, obligations and responsibilities which each civil partner has or is likely to have in the foreseeable future;

(d) the age of each civil partner and the duration of the civil partnership;

(e) any physical or mental disability of either of the civil partners;

(f) the contributions which each civil partner has made or is likely in the foreseeable future to make to the welfare of the family, including any contribution by looking after the home or caring for the family;

(g) the conduct of each civil partner, if that conduct is such that it would in the opinion of the court be inequitable to disregard it;

(h) in the case of proceedings for a dissolution or nullity order, the value to each civil partner of any benefit which, because of the dissolution or annulment of the civil partnership, that civil partner will lose the chance of acquiring.

Particular matters to be taken into account when exercising powers in relation to children

22 (1) This paragraph applies to the exercise by the court in relation to a child of the family of its powers under--

(a) Part 1 (financial provision on dissolution etc.) by virtue of paragraph 2(1)(d), (e) or (f)),

(b) Part 2 (property adjustment orders), or

(2) The court must in particular have regard to--

(a) the financial needs of the child;

(b) the income, earning capacity (if any), property and other financial resources of the child;

(d) the way in which the child was being and in which the civil partners expected the child to be educated or trained;

(e) the considerations mentioned in relation to the civil partners in paragraph 21(2)(a), (b), (c) and (e).

(3) In relation to the exercise of any of those powers against a civil partner ("A") in favour of a child of the family who is not A's child, the court must also have regard to--

(a) whether A has assumed any responsibility for the child's maintenance;

(b) if so, the extent to which, and the basis upon which, A assumed such responsibility and the length of time for which A discharged such responsibility;

(d) the liability of any other person to maintain the child.

Terminating financial obligations

23 (1) Sub-paragraphs (2) and (3) apply if, on or after the making of a dissolution or nullity order, the court decides to exercise its powers under--

(a) Part 1 (financial provision on dissolution etc.) by virtue of paragraph 2(1)(a), (b) or (c),

(b) Part 2 (property adjustment orders),

(d) Part 4 (pension sharing orders),

in favour of one of the civil partners.

(2) The court must consider whether it would be appropriate to exercise those powers in such a way that the financial obligations of each civil partner towards the other will be terminated as soon after the making of the dissolution or nullity order as the court considers just and reasonable.

(3) If the court decides to make--

(a) a periodical payments order, or

(b) a secured periodical payments order,

in favour of one of the civil partners ("A"), it must in particular consider whether it would be appropriate to require the payments to be made or secured only for such term as would in its opinion be sufficient to enable A to adjust without undue hardship to the termination of A's financial dependence on the other civil partner.

(4) If--

(a) on or after the making of a dissolution or nullity order, an application is made by one of the civil partners for a periodical payments or secured periodical payments order in that civil partner's favour, but

(b) the court considers that no continuing obligation should be imposed on either civil partner to make or secure periodical payments in favour of the other,

the court may dismiss the application with a direction that the applicant is not entitled to make any future application in relation to that civil partnership for an order under Part 1 by virtue of paragraph 2(1)(a) or (b).

Part 6 Making of Part 1 orders having regard to pension benefits

Pension benefits to be included in matters to which court is to have regard

24 (1) The matters to which the court is to have regard under paragraph 21(2)(a) include any pension benefits under a pension arrangement or by way of pension which a civil partner has or is likely to have; and, accordingly, in relation to any pension benefits paragraph 21(2)(a)(ii) has effect as if "in the foreseeable future" were omitted.

(2) The matters to which the court is to have regard under paragraph 21(2)(h) include any pension benefits which, because of the making of a dissolution or nullity order, a civil partner will lose the chance of acquiring.

(3) "Pension benefits" means--

(a) benefits under a pension arrangement, or

(b) benefits by way of pension (whether under a pension arrangement or not).

Provisions applying where pension benefits taken into account in decision to make Part 1 order

25 (1) This paragraph applies if, having regard to any benefits under a pension arrangement, the court decides to make an order under Part 1.

(2) To the extent to which the Part 1 order is made having regard to any benefits under a pension arrangement, it may require the person responsible for the pension arrangement, if at any time any payment in respect of any benefits under the arrangement becomes due to the civil partner with pension rights, to make a payment for the benefit of the other civil partner.

(3) The Part 1 order must express the amount of any payment required to be made by virtue of sub-paragraph (2) as a percentage of the payment which becomes due to the civil partner with pension rights.

(4) Any such payment by the person responsible for the arrangement--

(a) discharges so much of his liability to the civil partner with pension rights as corresponds to the amount of the payment, and

(b) is to be treated for all purposes as a payment made by the civil partner with pension rights in or towards the discharge of that civil partner's liability under the order.

(5) If the civil partner with pension rights has a right of commutation under the arrangement, the Part 1 order may require that civil partner to exercise it to any extent.

(6) This paragraph applies to any payment due in consequence of commutation in pursuance of the Part 1 order as it applies to other payments in respect of benefits under the arrangement.

(7) The power conferred by sub-paragraph (5) may not be exercised for the purpose of commuting a benefit payable to the civil partner with pension rights to a benefit payable to the other civil partner.

(8) The powers conferred by sub-paragraphs (2) and (5) may not be exercised in relation to a pension arrangement which--

(a) is the subject of a pension sharing order in relation to the civil partnership, or

(b) has been the subject of pension sharing between the civil partners.

Pensions: lump sums

26 (1) This paragraph applies if the benefits which the civil partner with pension rights has or is likely to have under a pension arrangement include any lump sum payable in respect of that civil partner's death.

(2) The court's power under Part 1 to order a civil partner to pay a lump sum to the other civil partner includes the power to make by the order any provision in sub-paragraph (3) to (5).

(3) If the person responsible for the pension arrangement has power to determine the person to whom the sum, or any part of it, is to be paid, the court may require him to pay the whole or part of that sum, when it becomes due, to the other civil partner.

(4) If the civil partner with pension rights has power to nominate the person to whom the sum, or any part of it, is to be paid, the court may require the civil partner with pension rights to nominate the other civil partner in respect of the whole or part of that sum.

(5) In any other case, the court may 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 civil partner instead of to the person to whom, apart from the order, it would be paid.

(6) Any payment by the person responsible for the arrangement under an order made under Part 1 made by virtue of this paragraph discharges so much of his liability in respect of the civil partner with pension rights as corresponds to the amount of the payment.

(7) The powers conferred by this paragraph may not be exercised in relation to a pension arrangement which--

(a) is the subject of a pension sharing order in relation to the civil partnership, or

(b) has been the subject of pension sharing between the civil partners.

Pensions: supplementary

27 If--

(a) a Part 1 order made by virtue of paragraph 25 or 26 imposes any requirement on the person responsible for a pension arrangement ("the first arrangement"),

(b) the civil partner with pension rights acquires rights under another pension arrangement ("the new arrangement") which are derived (directly or indirectly) from the whole of that civil partner's rights under the first arrangement, and

(c) the person responsible for the new arrangement has been given notice in accordance with regulations made by the Lord Chancellor,

the Part 1 order has effect as if it had been made instead in respect of the person responsible for the new arrangement.

Regulations

28 (1) The Lord Chancellor may by regulations--

(a) make provision, in relation to any provision of paragraph 25 or 26 which authorises the court making a Part 1 order to require the person responsible for a pension arrangement to make a payment for the benefit of the other civil partner, as to--

(i) the person to whom, and

(ii) the terms on which,

the payment is to be made;

(b) make provision, in relation to payment under a mistaken belief as to the continuation in force of a provision included by virtue of paragraph 25 or 26 in a Part 1 order, about the rights or liabilities of the payer, the payee or the person to whom the payment was due;

(c) require notices to be given in respect of changes of circumstances relevant to Part 1 orders which include provision made by virtue of paragraphs 25 and 26;

(d) make provision for the person responsible for a pension arrangement to be discharged in prescribed circumstances from a requirement imposed by virtue of paragraph 25 or 26;

(e) make provision about calculation and verification in relation to the valuation of--

(i) benefits under a pension arrangement, or

(ii) shareable state scheme rights (within the meaning of paragraph 16(3)),

for the purposes of the court's functions in connection with the exercise of any of its powers under this Schedule.

(2) Regulations under sub-paragraph (1)(e) may include--

(a) provision for calculation or verification in accordance with guidance from time to time prepared by a prescribed person, and

(b) provision by reference to regulations under section 30 or 49(4) of the 1999 Act.

(3) The power to make regulations under paragraph 27 or this paragraph is exercisable by statutory instrument which is subject to annulment in pursuance of a resolution of either House of Parliament.

(4) "Prescribed" means prescribed by regulations.

Interpretation of provisions relating to pensions

29 (1) In this Part "the civil partner with pension rights" means the civil partner who has or is likely to have benefits under a pension arrangement.

(2) In this Part "pension arrangement" has the same meaning as in Part 4.

(3) In this Part, references to the person responsible for a pension arrangement are to be read in accordance with section 26 of the Welfare Reform and Pensions Act 1999 (c. 30).

Part 7 Pension protection fund compensation etc.

PPF compensation to be included in matters to which court is to have regard

30 (1) The matters to which a court is to have regard under paragraph 21(2)(a) include any PPF compensation to which a civil partner is or is likely to be entitled; and, accordingly, in relation to any PPF compensation paragraph 21(2)(a)(ii) has effect as if "in the foreseeable future" were omitted.

(2) The matters to which a court is to have regard under paragraph 21(2)(h) include any PPF compensation which, because of the making of a dissolution or nullity order, a civil partner will lose the chance of acquiring entitlement to.

(3) In this Part "PPF compensation" means compensation payable under--

(a) Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection), or

(b) corresponding Northern Ireland legislation.

Assumption of responsibility by PPF Board in paragraph 25(2) cases

31 (1) This paragraph applies to an order under Part 1 so far as it includes provision made by virtue of paragraph 25(2) which--

(a) imposed requirements on the trustees or managers of an occupational pension scheme for which the Board has assumed responsibility, and

(b) was made before the trustees or managers received the transfer notice.

(2) From the time the trustees or managers of the scheme receive the transfer notice, the order has effect--

(a) except in descriptions of case prescribed by regulations, with the modifications set out in sub-paragraph (3), and

(b) with such other modifications as may be prescribed by regulations.

(3) The modifications are that--

(a) references in the order to the trustees or managers of the scheme have effect as references to the Board, and

(b) references in the order to any pension or lump sum to which the civil partner with pension rights is or may become entitled under the scheme have effect as references to any PPF compensation to which that person is or may become entitled in respect of the pension or lump sum.

Assumption of responsibility by PPF Board in paragraph 25(5) cases

32 (1) This paragraph applies to an order under Part 1 if--

(a) it includes provision made by virtue of paragraph 25(5) which requires the civil partner with pension rights to exercise his right of commutation under an occupational pension scheme to any extent, and

(b) before the requirement is complied with the Board has assumed responsibility for the scheme.

(2) From the time the trustees or managers of the scheme receive the transfer notice, the order has effect with such modifications as may be prescribed by regulations.

Lump sums: power to modify paragraph 26 in respect of assessment period

33 Regulations may modify paragraph 26 in its application to an occupational pension scheme during an assessment period in relation to the scheme.

Assumption of responsibility by the Board not to affect power of court to vary order etc.

34 (1) This paragraph applies where the court makes, in relation to an occupational pension scheme--

(a) a pension sharing order, or

(b) an order including provision made by virtue of paragraph 25(2) or (5).

(2) If the Board subsequently assumes responsibility for the scheme, that does not affect--

(a) the powers of the court under paragraph 51 to vary or discharge the order or to suspend or revive any provision of it;

(b) on an appeal, the powers of the appeal court to affirm, reinstate, set aside or vary the order.

Regulations

35 Regulations may make such consequential modifications of any provision of, or made by virtue of, this Schedule as appear to the Lord Chancellor necessary or expedient to give effect to the provisions of this Part.

36 (1) In this Part "regulations" means regulations made by the Lord Chancellor.

(2) A power to make regulations under this Part is exercisable by statutory instrument which is subject to annulment in pursuance of a resolution of either House of Parliament.

Interpretation

37 (1) In this Part--

"assessment period" means--
(a)
an assessment period within the meaning of Part 2 of the Pensions Act 2004 (pension protection), or
(b)
an equivalent period under corresponding Northern Ireland legislation;
"the Board" means the Board of the Pension Protection Fund;
"the civil partner with pension rights" has the meaning given by paragraph 29(1);
"occupational pension scheme" has the same meaning as in the Pension Schemes Act 1993 (c. 48);
"transfer notice" has the same meaning as in--
(a)
Chapter 3 of Part 2 of the 2004 Act, or
(b)
corresponding Northern Ireland legislation.

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