Pensions are usually valued using a Cash Equivalent Transfer Value, or CETV, which the scheme provides on request. For defined contribution pensions, the CETV is essentially the current pot value. For defined benefit and final salary schemes, the CETV is a calculated figure intended to reflect the value of the future income, and it can significantly understate what the pension is really worth. A pension expert will look beyond the CETV to assess the true economic value, particularly where there are guarantees, inflation protection or early retirement options attached.

In England and Wales, all pension assets accumulated by either spouse during a marriage form part of the matrimonial pot and can be shared on divorce. This applies whether you contributed to a pension yourself or not. How that sharing happens, whether through a pension sharing order, offsetting against other assets, or pension attachment, depends on the circumstances and is decided as part of the wider financial settlement. Scotland treats matrimonial property slightly differently. The right approach is rarely obvious, which is where specialist input is valuable.

A Cash Equivalent Transfer Value is the lump sum a pension scheme says it would transfer out to another arrangement. For defined contribution pensions it usually reflects the fund value accurately. For defined benefit and final salary schemes, the CETV is calculated using actuarial assumptions and can significantly understate the real value of the future income, sometimes by hundreds of thousands of pounds. Relying on the CETV alone to decide a settlement can lead to one party giving up far more than they realise. An independent analysis is often essential.

NHS, police, teachers, military, civil service and other public sector pensions are defined benefit schemes that promise a guaranteed inflation-linked income in retirement. They are typically among the most valuable assets in a divorce and the most commonly mishandled. The transfer values these schemes quote rarely reflect the true economic worth of the underlying benefits. Specialist analysis is needed to understand what is actually at stake, model the impact of pension sharing, and decide whether sharing or offsetting produces a fairer outcome. Each scheme has its own rules and quirks.

A pension sharing order is a court order that splits a pension between the two parties at the point of divorce, creating a separate pension pot for the receiving spouse. It is often the cleanest of the three available approaches in England and Wales (the others being offsetting and pension attachment) because it provides a clean break and gives each party their own pension to manage. The percentage split is decided as part of the financial settlement, frequently informed by a Pension on Divorce Expert's analysis of what would be fair.

Whether a formal report is needed depends on the complexity of the pensions involved and the route the divorce takes. A PODE report is generally recommended where defined benefit pensions are present, where the combined pension value is significant, or where the parties or the court need an independent view on what a fair settlement looks like. Many solicitors will commission one as standard in cases involving public sector or final salary pensions. A short conversation with us can usually clarify whether a report is needed in your case.

Costs vary depending on the complexity of the pension arrangements and the type of report needed. A straightforward analysis of a single defined contribution pension is considerably less involved than a multi-scheme defined benefit case. We agree the scope and fee in writing before any work begins, so there are no surprises. The initial conversation with our Client Liaison team is free, and the first consultation with an adviser is at our expense. If a PODE report is needed, we will quote for that separately once we understand the case.