Our Austin child support lawyer can explain that current and future income may be considered during a divorce or child custody hearing. Here are a few factors that can affect the value of the retirement plan.
The expert evaluating the value of the plan will use the pensioner’s age to determine the date of computation. This age is used to help determine the anticipated longevity of the pensioner. In a typical pension plan, the retiree is provided with benefits for the remainder of his or her life. Therefore, the expert will use the pensioner’s life expectancy and count backwards.
Another factor that can impact the value of the plan is racial lineage. Evaluators use this information to also help determine the pensioner’s expected longevity. Different races are associated with different life expectancies. For example, some races are associated with longer lifespans.
Likewise, women live longer than men on average.
An Austin child support lawyer can explain that the pensioner’s date of hire, date of termination, date of marriage, and date of separation can help classify which portions of time represent marital property and which do not. The most significant date is the date of retirement. This date has a direct impact on the present value of a pension plan. For example, an early retirement date increases a plan’s value because the employee will receive retirement income for a longer amount of time. Some employers set a later age for retirement status, such as age 62. However, other employers establish an earlier date for the eligibility of receiving a pension such as age 50 due to the nature of the job or physical expectations, such as fire departments and police stations. However, the divorce itself often affects the actual retirement age because the spouse has to recuperate funds that he or she lost in the divorce. In these types of cases, the court may have to make an independent decision regarding the more likely retirement age.
The discount rate represents how the value of money changes with the passage of time. If the rate is higher, the pension’s value decreases. Commonly, expert witnesses explain that the rate is attached to another rate, such as that used by treasury securities.
If you would like more information about how to determine the value of a pension plan, contact an Austin child support lawyer from Nunis & Associates by calling (512) 236-9696.