Actuarial Valuation

Article provided by: msmqdros.com

Actuarial Valuation

Evidence is everything in a divorce. Your case needs to be rock solid when filing a QDRO or other document requesting the splitting of community property. Moon, Schwartz, and Madden uses actuarial valuation and tracing to ensure a complete and accurate picture of finances.

Why do I need an actuarial valuation?

Requests to split joint assets require a determination of actual value. Many assets cannot be physically split. Others, such as retirement accounts, change over time. Receiving the right finances to get on your feet requires a complete picture of existing accounts.

An actuarial valuation appraises a retirement account’s assets against liabilities. The process involves using investment, economic, and demographic assumptions to better understand the funded status of a pension plan. Any assumptions are based on a mix of statistical prediction and professional judgment.

Why is a professional required to understand my retirement account?

The value of a retirement account changes over time. Courts often approve QRDO and other requests based on the amount funded at the time of divorce. This does not mean you should wait until the level of funding improves but does mean that you should

Filing a professionally generated actuarial report gives little wiggle room. A simple miscalculation turns into a torrent in the hands of a good lawyer.

The Basis for Actuarial Reports

A good actuarial valuation from a valuation actuary uses mathematics and trained interpretation. The models used are proven on more information than most people can access without significant funding.

Statistical evaluation from a mathematical professional lends credibility to the report as well. Courts view expert opinions more highly or even as the only acceptable interpretation. This is the reason that professionals in different fields offer their expertise in projects.

Building a Strong Case

While it is possible to file a QRO or other form without the backing of a report, this is not advisable. A lack of evidence leads directly to rejection. The court looks at facts. A case cannot be built on passion.

Tracing and actuarial valuations are the best evidence supporting claims to percentages of retirement accounts. They offer the informed starting point required for a favorable outcome.

How does a lawyer help with an actuarial valuation?

Lawyers are experts in knowing which assets apply to valuation and a growing number are mathematical professionals. We help direct the expert evaluation and can create an unbiased picture of your financial status.

At a time when different parties are locked in a bitter struggle, we are also calm and reserved. Judges do not tolerate conflict in resolving discrepancies between reports from both parties. A third-party is often necessary for a positive outcome.

Where can I obtain an actuarial valuation for my QDRO?

Your lawyer is a good starting point for an actuarial valuation. We often use this tool before even filing the first document.

At Moon, Schwartz, and Madden, we strive to help our clients obtain just outcomes in a trying time. Get in touch with us today at (925) 258-7100.


Actuarial Valuation