Myths and Facts About Pension in Divorce

By: Marvin Snyder

MYTH: A future pension is too
FACT: All future economic speculative for a value now. events have a present value.

MYTH: The pension's not yet vested, FACT: All pensions have a so it's valueless. present value, regardless.

MYTH: The total of the employee's
FACT: In most cases, the contributions is the value. pension value is far more.

MYTH: The value can change every
FACT: The pension is valued day, so what good is it. as close as possible to date.

MYTH: Each spouse has a pension,
FACT: If they are of different so call it a wash and don't bother sex and age, and pay, the to get either one valued. pension values are different.

MYTH: Fast case settlement is
FACT: Exposure to malpractice desired by all concerned, and if all assets not properly neither side has raised the valued, so pensions cannot pension issue, so just forget it. be ignored.

MYTH: It takes too long and costs
FACT: Time and costs are too much to get a value. relative to difficulty of case.

MYTH: There's no standard
FACT: Refer to membership in for judging experts. recognized actuarial body.

MYTH: There's no standard
FACT: See "The Value of reference work. Pensions in Divorce".

MYTH: The employee-spouse
FACT: The present actuarial could die tomorrow, value discounts for possible so the pension value is useless. mortality in advance.

MYTH: The employee-spouse
FACT: Actuarial values take could die soon after retiring, into account the probability so the pension value is useless. of death at any time.

MYTH: Immediate offset of the
FACT: Pensions have current pension value is unfair; the economic values accurately employee-spouse doesn't get determined by actuarial pension until retirement. mathematics.

MYTH: The pension should be
FACT: The prior value was valued at date of separation done with interest and death (or complaint) and then brought discounted, so if still alive forward with interest to the adding only interest is not date of distribution. sufficient without mortality.