When spouses divorce in Louisiana, one of their biggest assets may be a pension. Even if only one party works to earn the pension, the pension is considered marital property. As long as the party earns the pension during the marriage, it is considered marital property. Working spouses need to know how they can protect their pension in a divorce.
Pension earned during the marriage is subject to division
Only the portion of the pension that is earned during the marriage is divisible in the divorce. Protecting your interests to the pension begins with understanding that there may be a portion of the pension that is not marital. If a party earns the pension both before and during the marriage, only the marital portion of the pension is divisible. The working party keeps the portion of the pension that they earn outside of the marriage in its entirety.
There are multiple ways to value a pension
Valuing a pension in divorce cases isn’t always as simple as taking the expected payment and dividing it in two. The parties may use months of service credit in order to arrive at the value of the marital portion of the pension. Using months of service credit as opposed to using a flat dollar amount can make a significant difference in the amount that a party receives. In addition, the parties should carefully address survivor benefits, as they may carry significant value.
Fairly dividing a pension in Louisiana
A pension is a marital asset in Louisiana. However, there are important things that you can do in order to protect your pension in a divorce. An attorney can help you understand the marital value of the pension and assist you with the preparation of documents so you stand a better chance at getting your pension distributed fairly.