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Pension Evaluation
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Basic Pension Principles
State Pension Evaluation Classification
Cases
Community Property
Dividing Marital or Community Property
Divorce & Retirement FAQs
Equitable Distribution
Experience with Your Plan
Pension Evaluation Issues
Pensions
Retirement Terms
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State Retirement Plans and Divorce Information
State Listing of Statuses Disallowing Personal Identities In QDROs
State Analysis of IRA Exemptions
Collection Laws and Exemptions by State
Tax Treatment in Pension Evaluation
Distribution from Qualified Plans
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Methods:

Coverture Fraction Isolation Method

This method creates a fraction of total years in the plan through the account balance as of the End of Marriage Date over the total martial years contributing to the plan. A fraction is created and run against that balance. This method creates the actuarial reduction to marital / community value based on the length of plan contribution to the End of Marriage Date. In other words, that account balance is multiplied by the coverture fraction to determine the value of the account for marital / community property. In sum the coverture fraction isolation method is based on time sensitive calculations which are applied to the account balance as of the End of Marriage Date, creating the coverture fraction to that balance. The result is the value of the account for Marital / Community Property. Required is account balance as of the end of marriage date.

Subtraction Method

This method as it states, subtracts the pre-marital amount from the amount on or about the End of Marriage Date. The account balance as of the End of Marriage Date is then subtracted from the account balance as of the Date of Marriage. The difference in the account balances is the value of the account for Marital/Community Property. Required is the account balances as of the date of marriage and as of the end of marriage date.

Tracing/Segregation Method

The account balance on the Date of Marriage, plus the gain/loss investment experience attributable to this sum is subtracted from the account balance on the End of Marriage Date. The difference is the value of the account for Marital / Community Property. Required are the statements with Investment experience from the Date of Marriage to the End of Marriage Date.

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
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