Tips and Traps for Family Law Attorneys When Dividing Retirement Benefits in Divorce Cases

We will discuss in detail the key distinctions to have top of mind when negotiating or litigating the division of retirement benefits, and the implications of each distinction. This includes:

• the kind of retirement benefit involved (a defined contribution plan, a private defined benefit plan, or a  governmental defined benefit plan);
• traditional versus Roth money in defined contribution plans;
• whether there is pre-marital service or money in the Plan;
• accounting for participant loans;
• when to equalize retirement accounts and/or other marital assets against each other, when not to, and the principles to apply when doing so;
• when doing a present value calculation of a defined benefit plan makes sense and when it does not;
• when the Van Loan formula makes sense and when it does not;
• whether the plan participant is retired and has commenced payment of the benefit;
• when to preserve or require the participant to elect survivor benefits for the former spouse;
• the implications of a pre-retirement division for government versus private defined benefit plans
• the implications of a post-retirement division for government versus private defined benefit plans
• the nuances of the various governmental defined benefit plans, including ASRS, PSPRS, FERS and military retirement
• allocating the cost of survivor benefits;
• when to address Koelsch claims

Faculty
Erwin D. Kratz, Partner, ERISA Benefits Law, PLLC