We have combined actuarial principles and utlity theory to produce our structured approach to setting discount rates. It is possible to allow for tax, the importance of cash to the two parties, or both.

Download the approach in detail here.

It is common in divorce settlements when offsetting pension assets, which are considered illiquid as they cannot be converted immediately into cash, to reduce, or "discount", their value against other assets which can be immediately converted in to cash.

However there is no common approach across the country to how this discount should be calculated. As the approach is not defined in staute, and reporting of divorce cases has historically been restricted, the factors considered and the results obtained vary widely even within regions and between different judges.

Our approach is designed to provide a consistent and transparent benchamark against which discounts can be  agreed upon.