In a divorce the marital portion of the pension or retirement plan is going to be subject to valuation and equitable distribution. The non-marital portion should not be subject to equitable distribution by the court. All vested and non vested pensions, retirement, profit sharing, thrift savings, annuities, or insurance acquired during the marriage constitute marital property. Since only that part of the pension or retirement that accrued during the marriage is a marital asset a court will look to see the premarital and post marital contributions and the increase in value that relates to each.
Often a Qualified Domestic Relations Order is entered which directs the administrator of a retirement plan to divide the retirement and award the marital portion to the plan holder’s spouse.
After the court has divided marital assets and debts in equitable distribution in can also consider a pension or retirement as a potential source of funds for an alimony award when performing its need and ability to pay analysis.
If you have questions regarding a retirement or pension in the context of your divorce please contact one of our lawyers on (786) 539-4935.