Divorce can be devastating for the families but its worst effects are on the two people involved in it. The emotional damage inflicted by separation cannot be fulfilled by anything. But, divorce is not only an emotional thing.
There is a financial side as well in a divorce. So, when the time comes for dividing the financial asset of the couple, we see a lot of confusion and complications arising which are absolutely not called for.
In this scenario, we, Trusted Mediators, come to the forefront and help the couple to get the matter over in a swift and simple manner.
Pensions come in various forms, including defined benefit plans, defined contribution plans, and government pensions. It is essential to identify the type of pension involved in the divorce case, as each type has its own set of rules and regulations.
Determining the value of a pension can be complex. Professional appraisers or financial experts are often enlisted to calculate the present and future value of the pension. This valuation is a crucial step in the division process.
Many jurisdictions adhere to the principle of equitable distribution, which means that pensions are divided fairly but not necessarily equally. Factors such as the length of the marriage and each spouse's financial contributions are taken into account.
Divorcing couples have several options for handling pension division:
Instead of directly dividing the pension, spouses may opt to offset its value by awarding other assets of equivalent worth to one spouse.
Some couples choose to delay the distribution of pension benefits until the spouse with the pension begins receiving payments. This can simplify the process but requires careful planning.
In some cases, one spouse may choose to buy out the other's interest in the pension. This involves a lump-sum payment to the non-owning spouse.
Choosing mediation as a method for addressing pension division in divorce offers numerous advantages, including: