What methods are used to determine the value of retirement benefits?
A. For purposes of divorce in Maryland, a court has broad discretion in evaluating pensions and retirement benefits. In a Maryland divorce action, pension or retirement benefits can be valued (1) as equal to an employee’s contributions to the pension plus accrued interest or market experience thereon, (2) as the “present value” of future benefits expected to be received by the employee after retirement, or (3) through determination of a percentage to be paid to the nonemployee spouse from any future retirement payments received by an employee spouse, payable “as, if, and when” received. The method used for valuing a spouse’s pension or retirement benefits in dividing marital property upon divorce will depend upon the facts and circumstances of the particular case.
