Defined benefit plans are much rarer than they used to be, but some companies still offer them and they complicate the heck out of a divorce. While other assets can be cleanly tallied up on a spreadsheet, trying to determine the value of a pension can give attorneys and their clients migraines. This doesn’t have to be true if you use divorce settlement statement software.
Some divorce attorneys make the mistake of trying to value pension benefits themselves. The problem with this is there isn’t one “right” answer. There is a good chance the spouse’s attorney is going to come up with a different figure. Pension valuation requires a number of assumptions, and if you can’t back those assumptions up your valuation is going to be thrown out. Unless you are a CPA as well as an attorney, you are better off getting some help.
Another option is to hire an outside accountant to do the math. That adds credibility to your figures but also adds costs to the divorce. Any professional, whether an accountant or a lawyer, brings valuable experience to a situation and charges accordingly. You need a credible and yet affordable option for pension valuation and that is where Divorce Financials family law software comes in.
Divorce Financials simplifies the process of pension valuation. You’ll need to enter some information such as the retirement age and monthly amount, as well as the length of the marriage compared to length of employment. The software then calculates a fair and convincing present value of the pension plan that can be used as part of the settlement.
One advantage of using software is it removes some of the variables. We’ve tried to create a simple but reliable system that will always give the same value for a given pension. If the opposing attorney also uses Divorce Financials, then you both will reach the same conclusion and that will simplify settlement negotiations.
Easy Soft’s attorney practice management software is all about bringing the expertise you need in your law firm to your fingertips. Find out how easy pension valuation can be by downloading a free family law software demo, or by trying the full product risk-free for 30 days.