As with all divorce property/finance work the overwhelming aim is fairness between the parties.

This is hard to attain in the case of pensions because of the difficulties of valuation. Fairness may mean that the parties income should be equal but then again that may not be right.

What might make an equal distribution not right?

  • Length of marriage: for instance a short marriage may mean that the party without the pension may be entitled to a smaller amount of the assets (short marriage less than 5 years but as with most family work it is difficult to generalise).

 

  • Needs based: so one parties needs are such that they are entitled to more than half the pension or indeed the whole pension.

 

  • Contribution: recognised in general property/finance work under the s25 MCA 1973 check list.

 

  • Age of parties:  general earnings, capacity, the health of either party. Again, all in line with general principles of property/finance work.

 

What about the small number of none needs cases e.g sharing?

Once again there may not be a sharp distinction between needs and sharing and some of the above factors may be relevant to sharing cases. However if of particular significance in sharing cases may be the extent to which the pension is a matrimonial asset.

When can you rely on Cash Equivalent (CE) and not obtain a PODE report?

The Guide sets out a number of situations where it may be possible to dispense with a PODE report and reply purely on CE. As always though as in all financial remedies work it must be emphasised that each matter must be treated on its own merits. And in any event the parties might agree on the need for a PODE report.

So can you give situations where a PODE report might not be needed?

Yes. Both parties are in DC (defined contribution) schemes. There are no Guarantees. The parties are the same or similar ages.

Next, both parties are under 40, neither are in a uniformed service and neither are in a DB (Defined Benefit) Scheme.

What about sharing cases?

PODE may not be required if the Pensions values are not of great significance within the overall asset values. Remember by definition sharing cases will almost always be high value.

Regardless of other issues is there a combined CE below which it is not worth getting a report? A £100000 but if below a report might still be appropriate.

What about public sector pensions if none uniformed?

A PODE report may not be needed. For example, if this pension is the only pension in the marriage and it is by internal transfer only.

In addition, if this pension is to be dealt with by pension sharing and not by offsetting.

Or if no significant age difference between the parties.

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