New Jersey Attorney Richard Scott Diamond provided an interesting analysis of pension benefits after a divorce. Mr. Diamond reviews a New Jersey Appellate Division ruling from 2014 as it relates to owing pensions to a divorced spouse. Mr. Diamond provides an intellectual understanding how the pension calculation can be revisited if the pensioner improves his/her salary from a better paying position. Mr. Diamond provides a brief explanation of the calculation” For equitable distribution purposes in New Jersey, to divide a pension plan for equitable distribution purposes, most court orders / agreements use the “Marx Coverture formula analysis” to determine what amount of the monthly benefit in retirement is subject to equitable distribution and payable to the other spouse for his / her share of the benefit. Sounds complicated but its not.
The formula simply takes the years of the marriage (numerator) over the total years of the employees’ participation in the plan (denominator). So, if an employee was married for 14 years (while a participant in the plan) and employed by that plan (as of the time of retirement) for 25 years, the equation would be 14 years of marriage / 25 years of total employment in the plan or at the time of retirement, approximately 56% of the monthly benefit would be subject to equitable distribution and presumably the other spouse would be entitled to 50% of that 56% share of the monthly payment. “
To read the entire article, please visit: https://blogs.lawyers.com/attorney/divorce/division-of-pension-plan-benefits-when-employment-changes-post-divorce-61579/
If you have any additional questions as this may apply to your New Jersey Division of Pension Benefits pension, please email: firstname.lastname@example.org.