Have you ever been frustrated at the range of costs quoted by PODEs to prepare a report and then found that the price changes materially when the report becomes an instruction?
As PODEs usually quote on a fixed fee basis, the best way to avoid this happening is to provide as much relevant information as possible.
I am fairly new to preparing quotes but sometimes find it really hard to give a single figure, as I would like, because the information request is not detailed enough to understand how much work is actually involved. Yes, we can make educated assumptions but this will inevitably involve a wider range of costs being quoted with more uncertainty for the divorcing parties as to what the final cost would be. So what information do we need?
As a minimum my guide would be:
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- The ages of each of the divorcing parties.
- The full name and CEV for each pension (with the date of the CEV too if available). This really important in public sector schemes as they often have more than one section.
- For each pension is it defined benefit (DB) or defined contribution (DC)
- Is the person actively contributing to the pension (in service), have they left service but not yet retired (no longer contributing) or are they retired from the pension (it is in payment or drawdown)?
- Do you want to report to cover equalisation of incomes, equalisation of capital or offsetting?
- Do you want the report to cover apportionment to the marital period?
I know that sometimes the divorcing parties provide their solicitors with limited information about their pensions, but at least if you know what the PODE will need it will definitely mean you are much more likely to get a single figure for your quote which should not usually change unless the final letter of joint instruction asks for lots of extras.
Another alternative is to use a quote template on a PODE website which guides you on the structure. The one Actuaries for Lawyers use is here https://actuariesforlawyers.com/fee-quote-request/
Let me know if this helps.
Disclaimer – The views expressed here are the views of the writer only and do not necessarily represent the view of Actuaries for Lawyers. Whilst every effort has been made to ensure the accuracy of the information in this post, it is important to always check the benefit rules with the schemes before making any financial decisions based upon these. Actuaries for Lawyers cannot be held responsible for any losses incurred as a result of relying upon information contained in the blog section of our website as these do not constitute advice or act as a substitute for providing individual advice in relation to the specifics of a particular case.