Alexander from MA asks: "Why is a Pension Evaluation, in most cases, performed prior to a divorce being finalized on a pension plan payable at a future date?"
Spencer, from Pension Evaluators & QDROS Of Troyan, Inc Associates Group answers: "A Pension Evaluation is typically performed prior to a divorce being finalized to take a snap shot of the future stream of payments then reduced to an actuarial present cash value. Whereby arriving at the amount acquired during coverture for immediate offset settlement negotiations. Armed with this information, the parties' are better able to determine how best to split their marital assets accordingly. Often times the Pension is sizeable and may need to be read via a domestic relations order. The Courts recognize either immediate offset or deferred distribution settlements depending on the circumstances of the case."
Spencer Olsen
Lead Pension Analyst