Qualified Domestic Relations Order - Value of The Distributive Award

Value of The Distributive Award

There are several methods of determining of each party’s share of the fund. One of the relevant factors is whether or not the participant was already enrolled in the Plan prior to the marriage. If Plan participation post-dates the marriage, each party’s share is (usually) 50%* of the fund’s value as of the date of the commencement of the divorce action, execution of a stipulation of settlement agreeing to the distribution, or entry of the divorce judgment (whichever date is earliest).

If Plan participation pre-dates the marriage, the usual method in New York State (others may be similar) is the “Majauskas” formula (Majauskas v. Majauskas, 61 NY2d 481, 491-492). A distributive ratio is established by dividing the duration of Plan participation (in months) by the duration of the marriage only while a member of said plan (in months). Both terms end as of the date of the commencement of the divorce action, execution of a stipulation of settlement agreeing to the distribution, or entry of the divorce judgment (whichever date is earliest, as above). The non-participating party’s share is (usually) 50% of the resultant fraction of the fund, the balance being retained by the participant. The value of the share can also be increased or decreased to offset marital property rights or alimony payments. Most States also allow QDROs to be entered to collect on child support payments which are past due.