Sorting out retirement plan assets in a divorce is a difficult problem. Pre-marital assets are a question even in dealing with 401(k) and other defined contribution plans, but those issues are much easier than sorting out defined benefit plans — the typical pensions that some companies and most governments still use. The time value of money, plan rules, retirement age rules, and many other factors go into developing a true value for a defined benefit plan during a divorce settlement. Author Timothy C. Voit unwinds the tangled strings of these factors and shows in plain language how to approach the tough question of valuing a defined benefit plan during an emotional time.
* * * * *
This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.