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.