In New York, pension and retirement benefits are often one of the most valuable resources a couple shares and dividing them often requires careful legal and financial consideration. New York is an “equitable distribution” state, meaning that marital property is divided fairly, not necessarily equally, in a divorce. If either spouse contributed to a pension or retirement account while married, that portion is generally considered marital property and is subject to division.
A pension is often accumulated over many years, some years which may pre-date the marriage. Only the portion of the pension earned during the marriage is subject to division. Courts often use a formula, such as the Majauskas formula, to determine the marital portion of a pension. This calculation involves dividing the years of pensionable service during the marriage by the total years of service to date, which gives the percentage of the pension that is considered marital property. It is important to receive informed advice from your attorney when determining how a pension should be divided in a divorce.
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