Dividing Pension With Ex-Wife In Kentucky

The three methods used by Kentucky courts in dividing pension plans in a divorce case are the net present value method, the deferred distribution method, and the reserve jurisdiction method. In re the Marriage of Hunt, (Colo.1995) at 530-31. The net present value method results in the non-employee spouse receiving a lump sum to be distributed immediately. Id. at 531. It has also been referred to as the "immediate offset" method because the lump sum may be offset by the value of other marital property. Id. This method is frequently used when the value of the pension is low because the employee spouse has worked for his or her employer for only a few years or because the job is a low paying one. Id. In the deferred distribution method, the court predetermines the percentage of the pension income that the non-employee spouse will be eligible to receive once the pension is vested and matured. Id. The marital interest of the non- employee spouse is distributed in accordance with that percentage at a later date. In the reserve jurisdiction method, the percentage of the pension income to be received by the non-employee spouse is determined later when the pension has vested and matured. Id.