Divorce Pension Valuations

What Pension Valuations Are and Their Importance

Due to their value and growth potential, pensions and their survivor benefits are important to consider when planning the division of assets during the divorce process.

A pension plan is a type of retirement plan where an employee adds money into a fund that also includes money from their employer. These investments later provide income to the worker when they retire. Typically, the employee can choose to receive pension benefits as a lump sum, or in a series of steady payments throughout the course of his or her retirement.

Pension plans are calculated based on three key criteria about an employee:

  1. Years of service
  2. Age
  3. Annual wages, or an average of current and past wages, over a number of years

Most pension plans are taxable, so you’ll need to fully understand the amount of any possible taxes on your pension plan proceeds. We can help you understand the tax implications and provide advice about the best financial actions to take.

Divorce Financial Solutions Service

The Pension Valuation is a matter of financial planning. Therefore, you need a trained CDFA® to assist you and your lawyer navigate this aspect of your divorce.

At Divorce Financial Solutions, we have the necessary pension valuation expertise. An experienced retirement solutions consultant who has designed and managed pension plans with Plan Administrators, such as Veralynn Morris, will be able to help each party understand the implications and effects pension valuations have on future finances. This is helpful whether you seek her advice as the plan participant or the alternate payee.

Ms. Morris is not a lawyer and her services are not a substitute for legal services. However, we can provide you with a list of lawyers in your area upon request. A trained CDFA® can then assist you and your lawyer in navigating the financial aspects of your divorce.