Law Articles

Understanding the Role of a PODE (Pension on Divorce Expert) 19/06/2025

In family law proceedings in England and Wales, the division of pension assets upon divorce or the dissolution of a civil partnership can be one of the most complex and misunderstood areas of financial settlement. Pensions often represent a significant part of a couple’s overall wealth, and ensuring their fair division is essential to achieving an equitable outcome for both parties. This is where a Pension on Divorce Expert, or PODE, plays a crucial role.

What Is a PODE?

A PODE is a specialist financial expert - usually an actuary or pension consultant - who provides independent analysis and advice in family law cases involving pensions. Their role is to help solicitors, parties, and the court understand the true value and long-term impact of pension assets, particularly when these are difficult to compare or evaluate fairly.

PODEs are frequently instructed to provide expert reports that guide the court in reaching fair pension-sharing outcomes. Their insight is especially valuable in cases involving complex pensions, such as defined benefit schemes, or when the parties hold different types of pensions (e.g., one party has a public sector pension while the other has a personal pension).

Why Is a PODE’s Input Important?

The need for a PODE arises because not all pensions are created equal - even when their cash equivalent values (CEVs) appear similar on paper. CEVs represent the ‘capital’ value of a pension but do not always reflect the actual benefits the pension will provide in retirement. This is particularly true when comparing defined contribution pensions (which depend on market performance and contributions) with defined benefit pensions (which promise a guaranteed income, often linked to final salary and length of service).

The Pension Advisory Group’s authoritative report, “A Guide to the Treatment of Pensions on Divorce,” recommends using PODEs in cases where pension assets are significant or complex. In particular, in needs-based cases - where the court is aiming to meet the reasonable income needs of both parties - expert advice is often needed to ensure the division of pensions results in broadly equal income in retirement.

For example, if one party has a defined benefit pension worth £400,000 CEV and the other has a defined contribution scheme with a similar CEV, the actual retirement income each person receives could differ substantially. A PODE can analyse both pensions and calculate what share each party should receive to equalise their retirement incomes fairly.

When Is a PODE Not Necessary?

While PODEs can provide vital insight, they are not required in every case. The Pension Advisory Group’s report identifies scenarios where it may be appropriate to divide pensions using CEVs alone, without expert analysis:

• Where both parties’ pensions are defined contribution schemes;
• Where the parties are relatively young (typically under 40);
• Where the pensions are modest in comparison to other assets (e.g., the family home or investments);
• Where the total value of all pensions is under £100,000;
• Where the only pension involved is a non-uniformed public sector defined benefit scheme (such as the  NHS or Teachers’ Pension Scheme), which only permits internal transfers.

In these types of cases, the added cost and time involved in instructing a PODE may not be proportionate to the complexity or value of the pension assets.

Importance of Proper Instructions to a PODE

Even in cases where a PODE is instructed, it is crucial that their input is based on clear, appropriate questions. A well-known example of this is the case of T v T, where the husband's legal team asked a PODE to report on the effect of a pension scheme’s funding deficit. The expert, Ms Caroline Bayliss, declined the instruction, stating that the question was based on a misunderstanding of pension law and actuarial practice. The court agreed that a PODE report was unnecessary in that context.

This case highlights the importance of ensuring that legal teams ask the right questions when instructing a PODE and that the expert’s role is tailored to the specific issues at hand. Judges also play an important role in determining whether a PODE is truly necessary to assist the court.

Achieving Fairness Through Expertise

In summary, a PODE can be an indispensable part of achieving fairness in divorce or dissolution settlements involving pensions. Their expertise helps uncover hidden differences between pension types, ensure parity of retirement income, and provide clarity on long-term financial implications - factors that are often missed when relying solely on CEVs.

However, their involvement must be proportionate and based on the facts of the case. In straightforward or low-value matters, using CEVs may suffice. But in more complex scenarios - particularly those involving significant defined benefit pensions or older parties approaching retirement - a PODE’s expert report can be vital to ensuring that both individuals walk away with a fair share of pension income.

By using PODEs appropriately and following the guidance of the Pension Advisory Group, legal professionals and the courts can navigate the complex world of pensions with greater confidence and achieve financial settlements that are just and sustainable for both parties in the long term.

For further information and advice on this issue, and other family law issues, please contact us for a free initial consultation.