A pension valuation, described below, is not always required when dividing a retirement account. In the following two situations, a pension valuation is probably not required:
1. When a specified percentage of the subject retirement account is agreed to or required pursuant to a Marital Settlement Agreement or Final Judgment of Divorce;
2. When a specified dollar amount of the subject retirement account is agreed to or required pursuant to a Marital Settlement Agreement or Final Judgment of Divorce.
In both of the above situations a pension valuation would likely not be required unless the Final Judgment of Divorce or Marital Settlement Agreement stated otherwise. As such, if you fall into either of these situations, then no need to read further as you will likely require a Qualified Domestic Relations Order (“QDRO”), Domestic Relations Order (“DRO”), Military Retirement Division Order or Letter of Transfer in the case of an IRA. To begin this process please visit the QDRO Process Page .
However, if this is not the case, then keep reading below.
A pension provides cash flow to the recipient upon retirement and either the pension or its value can be divided by the court as part of the divorce. A pension valuation depends on the amount of vested and unvested monthly benefits accrued, the age of the recipient, and length of time to eligibility for payout. Like most assets, pensions normally are required to be valued for settlement or trial purposes. Determining the net present value of pension or other complex retirement assets require expert analysis. The valuation expert will need to review the plan document and a current benefits statement. Often these documents require time to acquire. Beginning the process of obtaining these reference documents early in the process can save time and money in the long run. If you believe you need a pension valuation, please Contact Us directly for further details on how to get started. The fees for this service vary depending on the type of retirement plan