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Maryland Courts use
different methods to divide pensions between spouses, depending on the
type of pension.
Upon divorce, the Court can transfer ownership of an interest in a
pension, profit sharing, 401(k), IRA, stock option or other deferred
compensation plan owned by either spouse.
For pension plans with a present value (e.g. 401(k)), the Court may
order a portion of the account transferred to a qualified account for
the other spouse.
For pension plans without a present value (e.g. government pensions with
monthly benefits upon retirement), the Court may divide the pension by a
formula: total years of marriage during employment divided by total
years of employment. Under this formula, the non-employee spouse
receives a percentage of the benefits if, as and when the employee
receives or is eligible to receive benefits, rather than immediately.
The Court may also award survivor benefits payable on the employee
spouse’s death.
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