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Introduction
When couples get divorced they must decide how to divide their property. Retirement benefits (pensions) often form a substantial part of the parties' total marital estate and many times are the largest single marital asset afforded the couple. Similar to other assets, pensions are typically divisible in cases of divorce to the extent that they are acquired during the period of marriage. In order to divide a pension, the value of the retirement benefits accumulated during the period of marriage must be determined. The division of these benefits follows a 3-step process.
- Classification
Each pension is classified as to whether or not it is considered property, and from there, separate or marital property. There is a broad general consensus that retirement plans of all types do constitute property.
- Valuation
Each pension that is considered marital property is appraised to determine its value.
- Distribution
Each pension that is considered marital property is analyzed to determine the most equitable way it should be divided and distributed to the parties.
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