Post-Divorce Pension and Deferred Compensation Account Transition
All property that is acquired during the marriage is divided in a Divorce in New York State. That includes all deferred compensation plans and defined benefit plans. A defined benefit plan is a plan that pays a specific amount of money every month after retirement. A deferred compensation plan is a plan that consists of a set amount of money that can be accessed at periodic intervals after the age of 59 and a half.
The defined benefit plan is divided by an order that either sets up a shared pension, or a separate interest pension. In both circumstances, the spouse that is not a participant in the plan will receive a periodic monthly payment from the pension after retirement. The deferred compensation plan is simply divided either in half, or by a percentage that either they or the court has ordered. The part that belongs to the spouse who is not a participant in the plan is rolled over into a rollover IRA. That plan is titled to the spouse that is not a participant in the plan.