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Basics of Pensions, Page 4
Junior Associate: Question?

Could this type of time coverture be used for my mother's defined contribution plan?

Senior Law Partner: Answer

It could be, but it is the least preferred method. Another way to determine the marital portion of your mother's pension would be to coverture by contributions. The total contributions made to her account during their marriage is divided by the total contributions made to her account as of the Date their Marriage Ended. This fraction would then be multiplied by the account value as of the Date their Marriage Ended.

Junior Associate: Question?

So if my mother made small contributions to her plan in the early years and larger contributions during the marital years, this type of coverture could vary drastically from a coverture by time.

Senior Law Partner: Answer

Yes, it could.

Junior Associate: Question?

It seems to me that since they live in a "dual classification" state that says the growth on separate property remains separate property upon divorce, we must somehow track the growth or interest that has accumulated on the portion of her pension that was earned prior to their marriage?

Senior Law Partner: Answer

You are correct in your thinking. Unfortunately, this can get very complicated. That is one of the reasons why we hire an expert pension appraiser.

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