Upon separation, pensions are valued differently depending on whether the the owner is retired or not.
A pension right may be treated as a capital asset or income.
Simply put, a pension right for a person who is not yet retired is an entitlement to a future income steam and the present value of that future income stream must be valued as an asset.
After retirement, the pension becomes an income asset.
As an asset, a pension should be included in the calculation of parties’ Net Family Property and consideration should be given for contingent taxes.