Assumption: "My pension and my ex's pension are worth the same if the paper values look similar."
1 min readThis content reflects observational insights and lived community experiences. It does not constitute legal advice — always consult a qualified professional for your specific circumstances.
What People Expect
People often assume a pension's value on divorce is just whatever figure sits on the annual statement. But not all pensions work the same way. A DC (defined contribution) pension is a pot you and your employer paid into, invested, and it's worth whatever's actually in there. A DB (defined benefit) pension, common in the NHS, teaching, civil service, and local government, promises a set income in retirement based on salary and years of service, regardless of how any underlying investment performs.
Court Reality
The cash equivalent value (CEV) used for a DB pension can look deceptively low next to a DC pot of the same headline figure, because it doesn't reflect the real value of the guaranteed income being given up. That's exactly why courts and solicitors often bring in a PODE (Pension on Divorce Expert) report rather than relying on CEV parity, so that offsetting or sharing is based on actual retirement income, not just a transfer value that undersells what a DB pension is really worth.
Download the card and post it on Facebook, LinkedIn, or wherever you're active. Every share helps another litigant find this before their hearing.
The Gap?
"My pension and my ex's pension are worth the same if the paper values look similar."
Court Reality
The cash equivalent value (CEV) used for a DB pension can look deceptively low next to a DC pot of the same headline figure, because it doesn't reflect the real value of the guaranteed income being given up. That's exactly why courts and solicitors often bring in a PODE (Pension on Divorce Expert) report rather than relying on CEV parity, so that offsetting or sharing is based on actual retirement income, not just a transfer value that undersells what a DB pension is really worth.
Experienced a gap between what you thought you knew about family court and the reality? Share your own and get credited.
familycourtbridge.org
Navigating court alone?
A McKenzie Friend can help you make sense of this in the context of your own case.
Find your supportCookie Consent
We use essential cookies only to provide you with the best experience on our website. No tracking or analytics cookies are used.