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Dividing Defined Benefit Pension Plans

In most states, the court uses one of two methods to divide defined benefit pensions. The two ways are:

• Current value. The court estimates the current value of the pension, using statistical projections. Then it awards the non-employee spouse a portion of that value in cash. Click here for an example.
• Actual distribution. The court decides what portion of the pension the non-employee spouse should get. Then, when the pension is actually distributed, the non-employee spouse gets that portion of each payment. Click here for an example.

It is often difficult to decide which approach to take. For a thorough discussion, please go through the "Pension Plans" chapter in the Finance section of the program .

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