Q. Cathy R. of New York asks: "I Am Going Through a Divorce and Do Not Have Any Retirement Plans. My Ex-Husband, On the Other Hand, Has a Pension and 401(k) Plan. I Am Told I Have To Get a Pension Evaluation. What is a Pension Evaluation and Why Do I Need An Evaluation Performed?"
A. Spencer, in the Pension Department, of Pension Evaluators & QDROS Of Troyan, Inc Associates Group answers: "When a couple divorces, they typically begin by focusing on dividing the property that's easy to see, the home, furniture, cars, etc. The property they can't see their intangible property is also affected by divorce. For many families, a pension is the largest asset, after the family home. Even if the pension is earned solely by the efforts of one spouse, the portion of it that was earned during the marriage is still marital property subject to division by the court.
Many courts prefer to give full rights to a pension to the party who earned it as long as the other party will have a sufficient amount of income and property from other sources. If the pension is the primary source of income that a spouse would have and there are no other significant sources of income, the court is likely to divide rights to the pension. The court can divide the pension between the spouses by percentages (i.e., spouse A will receive 60 percent, spouse B 40 percent) or by a fixed cash amount to one spouse with the remainder to the other spouse (i.e., spouse A will get $600 per month, spouse B $400)."
Spencer Olsen
Lead Pension Analyst