Pensions and Divorce

It is not the purpose of this overview of pensions  to furnish legal or accounting advice. It should be considered a somewhat detailed "sketch" and can serve as a reasonable guideline, although its accuracy is compromised both by new legal decisions and by factors which have been omitted for the sake of brevity.

A pension plan is a tax deferred savings plan. Typically, during years of employment, monetary contributions are made by the employee and/or on behalf of the employee by the employer to a retirement plan. The contributions and the earnings generated accumulate over time, tax free, until retirement. Upon retirement, the employee will receive a specific monthly income for life or a lump sum payment.