Pension and retirement plans are considered to be a combination of both marital and non marital property. Unlike most other assets where an asset must be classified as either marital or non marital, a retirement plan can be both. All contributions to a retirement account that occurred during the marriage and the appreciation of that contribution will be deemed marital. The value of the plan the day before the marriage and the appreciation of those assets that were in the account will be deemed non marital.

     Stock options are normally incapable of valuation though it is a marital asset. For example if a husband is awarded an option that is exercisable in ten (10) years providing he still works for the firm and the parties marriage is dissolved in year 5, it is impossible to know the value of the asset since it will be $0 if the husband leaves employment and you can?t predict what a future stock value will be. The other spouse will be entitled to his/her fair share of the marital portion of the asset. In the above case the marital portion of the asset would be fifty percent of the option since it has another five years to vest. The spouse claiming an interest in the option could receive one half (½) the fifty percent (50%) marital interest or twenty five percent (25%) of the asset.

     Except for IRA'S, special orders called Qualified Domestic Relation Orders must be entered that allows the plan to be divided by the parties without taxation.