We are aware that a number of pension experts offer to carry out an automated “Express Valuation” of pension rights on their website for a small nominal fee.
 

What we would say to our solicitor clients is, an Express Valuation for a fee of £25 or so can certainly be obtained and it would be possible to get valuations of four pensions for only £100+VAT in this case. However the million dollar question is what are you getting for your money? Four numbers? There are some very pertinent questions to ask next...

• What if these numbers differ from the CETV?
• Which should be used?
• Why is there a difference?
• What does the Court need to understand about this?
• What is the implication should a pension share be arranged?
• Is the value obtained suitable for offsetting/sharing or both?
• Is the data input into the express valuation up to date?
• Is the data correct?
• Does it deal with underfunded schemes?
• Does it deal with scheme with previous transfers in?
• Does it take into account any particular special features of the scheme?

Express Valuations are not a substitute for an independent actuarial valuation. It would be risky in our view for an individual to make decisions concerning the pensions aspects of their divorce settlement based upon a standardised Express Valuation as whilst these may be cheap to obtain, we do not believe that a limited assessment such as this will fully deal with the complex issues that require consideration. In particular it would be our opinion that an independent actuarial assessment may be appropriate in cases involving final salary pension schemes, where the size of the Cash Equivalent Transfer Value is in excess of £50,000.

Some people choose to get divorced on a Do it Yourself basis on the internet, but it would be our view that this is no substitute for getting good advice from an experienced firm of Family Lawyers. Similarly if you want to get advice relating the pensions aspects of a divorce settlement it is important to get bespoke advice from a firm of IFAs who are experienced in advising on the pensions aspects of divorce settlements and a firm of actuaries who are able to advise on how an appropriate division of pension assets should be made.    

We would say to solicitor clients, if you want to use Express Valuation software, use it. However when you have four numbers representing the valuation amounts are you really prepared to put your neck on the line and advise your clients to settle on this basis?