Forensic Actuarial Tracing

Determining what assets should be divided in a divorce can become complicated very quickly. Retirement assets often commingle throughout a marriage, making it difficult to decipher what portion is marital or non-marital. This is where our expert team at Pension Evaluators® & QDROs of Troyan Inc® & Associates Group is invaluable.

Using our decades of experience and proprietary software, we provide reliable forensic actuarial tracing services for legal professionals needing to secure the retirement benefits their clients deserve. For decades, we have served countless attorneys and family law firms across the nation; we would gladly have the opportunity to serve you, too. 

For more information about our forensic actuarial tracing services and to get started with us, call (800) 221-0706 or connect with us online. 

Methods for Determining Marital & Non-Marital Retirement Benefits

Three primary methods exist for determining what portion of retirement funds are marital or non-martial. 

These include the following:

Tracing

This method identifies the marital and non-marital parts of a retirement fund by tracing the sources of contributions. It requires detailed documentation illustrating how funds accumulated in the account. 

Coverture Fraction 

The central feature of this method is basic division. We divide the number of years of marriage that a person made contributions to a retirement account by the total number of years they participated in the plan. The resulting value is the marital portion of the retirement funds. 

Subtraction

A relatively simple method, this one works by subtracting the retirement account’s value on the date of marriage from its value at the end of the marriage. The result is an amount that can be considered marital property and subject to division. 

Which Method Is Most Accurate?

The subtraction and coverture fraction methods are not as accurate as tracing. The subtraction method yields values that fail to account for a person's earnings on the pre-marital balance. To its fault, the coverture fraction method does not factor in a person’s earnings or the value/frequency of their contributions. 

The tracing method yields results that accurately reflect the investment experience of a retirement account during a marriage. 

This is because it offers the following:

• Assists in calculating the appreciation of the retirement account during the marriage
• Enables the differentiation between passive appreciation (market gains, accrued interest) and active appreciation (contributions made during the marriage)

The fact that tracing is the most accurate makes it the preferred method for identifying marital and non-marital assets.  

The Importance of Documentation to Tracing

It is important to note that tracing requires extensive documentation. However, all is not lost if someone is missing certain financial records. Our team has numerous approaches for making tracing viable. We can utilize rates of return based on aggregate bond indexes or plan provider information; we may even leverage software that extrapolates rates of return. Whatever your client’s needs, count on us to work to deliver clear information and detailed reports that hold up under a court’s scrutiny. 

For Forensic Actuarial Tracing, Partner with Pension Evaluators®

For decades, ours has been a name lawyers and firms throughout the country have trusted for forensic actuarial tracing, alongside our pension evaluation and qualified domestic relations order (QDRO) services. Numerous legal professionals have turned to us for cases that meant everything to their clients’ financial stability and futures. Time and again, we have provided excellent results. In fact, you can read about many of the great experiences people have had with us on our site’s reviews page.

Enlist the help of our highly experienced and widely trusted team by calling (800) 221-0706 or contacting us online.