ASSESSMENT SERVICES
Pension Valuations
When Present Values Are Needed
Some courts require that a value be assigned to every asset in a divorce. When it comes to the defined benefit pension plan, we can prepare a present value report that provides the current value of all future pension payments.
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Even if the court does not require a value, there are times when a present value report is needed. For instance, if the parties intend to offset assets or if a Social Security Offset needs to applied.
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Our Present Value Report
After reviewing the biographical and plan information, we prepare a comprehensive actuarial present value report. This provides the current value of the future stream of income from the pension, discounted for mortality and interest. We report the total present value and also determine the portion earned during the marriage using a traditional coverture fraction.
Equalization Calculation
When Equalization Calculations are Needed
Often, the parties’ divorce decree or settlement agreement calls for an equalization of the accounts as of a specified date. After reviewing the information provided to us, we will calculate the equalization payment and assist in determining from which account this payment should come (if not already specified in the divorce decree or settlement agreement).
To calculate the equalization payment, we require a retirement plan statement or other official document with the value as of the date of division.
Please note: We follow the directives included in the parties’ divorce decree or settlement agreement. If pre- and post-tax accounts are under one umbrella, we will also calculate all accounts together.
Our Equalization Calculation Report
We will list each account considered for division, including the valuation date on the statement provided to us, and any pre-marital interest. If the equalization payment must come from more than one retirement account in order to satisfy the payment, we will provide a suggested breakdown if not specifically addressed in the parties’ divorce decree or settlement agreement.
Retirement Plan Evaluation
Why a Retirement Plan Evaluation?
Understanding the details of retirement assets before the divorce is finalized is critical. Some retirement plans have unique provisions or limitations that can impact your client’s future. It may not be possible to secure your client’s share of the benefit if you wait to learn of these after the divorce is final.
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What We Provide:
We offer hourly consulting ($200/hour) to review and analyze retirement plan division options. You provide statements and any other information you have, and we will provide a written summary of the division options available for consideration. We are also available to discuss the options with you and your client, either by Zoom or a conference call.