Divorce & Pension Valuations

During the early stages of a divorce, lawyers often request/require that a pension valuation be completed.  What is a pension valuation?  A pension valuation is a calculation performed to determine the lump sum present value of a stream of pension payments.  After the present value is determined, the marital portion of the pension can be calculated based on certain factors.  In general, a pension valuation is useful if the pension is going to be offset with other assets.

Before incurring the expense of a pension valuation it may be useful to get an estimated pension valuation to decide if the pension can even be offset with other assets.  Many divorcing individuals who are active/retired NYC employees are referred to the same pension valuation firm which charges a $700 fee for the valuation.  After the pension valuation is done and the $700 fee has been paid, the divorcing individual realizes the pension cannot be offset with other assets.  In other words, the expense incurred to perform the pension valuation was a waste of money.

Thomann Tax can provide an estimated pension valuation to help divorcing individuals decide whether the pension can be offset with other assets.