Hi everyone,
What are the guidelines of dividing pension programs between divorcing couples.
My husband's pension is much larger than mine but he is also older than me and will retire sooner.

Is there some sort of formula to calculate the division of this asset?
Thanks,
Lea.

Hi Lea,

I will answer your question based on NY law - since that is where we are based.

In NY, pension assets earned during your marriage are considered marital, or jointly-owned, property. The presumption is that, during your marriage, you functioned as a team. You may have decided that one person should contribute the maximum to their pension plan, because their company has a good match - and the other would contribute a smaller amount.

At the end of the marriage, the court (or the two of you, in a mediated agreement) would generally do as follows:

1 - figure out what you each had, as far as retirement assets, on or as close to the date of your marriage, as is possible.
2 - pick an end date - could be the date you separated, the date one of you files an action for divorce, the date you sign your mediation agreement.
3 - get values of pension assets on the end date.
4 - subtract #1 from #3. This is the value earned during your marriage.
5 - Then add each of your values together, and divide by 2. This is what each of you should walk away with, at the end of your divorce settlement.

Finally - pension assets usually need a court order, for them to be divided.

Hope that helps,
Rachel

PS - If you are in a different state - then you should check with someone there.