Majauskas Formula Calculator
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The Majauskas formula is often used in divorce settlements to determine the portion of a pension that should be allocated to a spouse based on the duration of the marriage relative to the years the pension accrued. This calculation ensures a fair distribution when dividing retirement assets. The formula typically uses the following approach:
Calculation Formula
\[ \text{Spouse's Share} = \left(\frac{\text{Years Married}}{\text{Years Pension Accrued}}\right) \times \text{Pension Value} \times 50\% \]
Example Calculation
If a couple was married for 15 years and the pension accrued over 25 years, with a total pension value of $500,000, the calculation would be:
\[ \text{Spouse's Share} = \left(\frac{15}{25}\right) \times 500,000 \times 0.5 = 150,000 \text{ dollars} \]
Importance and Usage Scenarios
The Majauskas formula is a crucial tool in determining equitable distribution during divorce, especially when one spouse has a pension that was partly earned during the marriage. It provides a clear and standardized way to allocate retirement benefits, ensuring fairness for both parties.