How is a defined contribution plan valued for division in a divorce?
The value of a defined contribution plan is the total account balance maintained for an individual under the Plan as of any given date. Certainly the manner in which such an account is viewed as property will depend upon the property model followed in your state. Depending upon the property model followed, the entire account balance could be subject to division or, depending upon the circumstances of the employee’s participation, only part of such account could be subject to division. If an individual began participating in the defined contribution plan prior to marriage, the entire account balance maintained by the plan on his/her behalf may not be considered marital property. In this case it is the job of the appraiser to determine what part of such account balance is attributed to the period of marriage and which should remain the sole property of the employee. Pension Appraisers, Inc. offers three methods of determining the portion of a defined contribution plan which accumulated d
