Dividing marital property during divorce is one of the most emotionally and financially exhausting parts of the process. Who knew splitting numbers could feel so overwhelming? One way to ease the stress is through knowledge—understanding how certain tools in family law work can help you feel more prepared and in control.
One such tool is the Coverture Fraction, which is commonly used to divide retirement benefits—especially defined benefit plans (such as pensions)—in a way that is fair and equitable.
What Is the Coverture Fraction?
The Coverture Fraction is a legal formula used to determine how much of a retirement account is considered marital property, and how much is separate. It’s especially helpful when dividing pensions that continue to grow after separation or divorce.
This formula ensures that the non-owning spouse receives their fair share of the portion of the retirement benefit earned during the marriage, but not any part of the benefit that grows due to contributions made after separation.
Why It Matters
Retirement accounts, particularly defined benefit plans, often continue to increase in value over time—even after the divorce is final. Without a system like the Coverture Fraction, the non-owning spouse might either receive too much or too little of the benefit that was earned during the marriage, including any passive gains or losses on the benefit due to market forces.
The Formula
Here’s how it works:
Coverture Fraction =
(Number of years of the marriage during which the benefit was earned)
÷
(Total length of credited service for the benefit)
This fraction is then applied to the total benefit amount to determine the marital portion of the pension. Finally, that marital portion is multiplied by the percentage awarded to the non-owning spouse.
For Example:
Let’s say a spouse was enrolled in a pension for 30 years, and 15 of those years were during the marriage. The Coverture Fraction would be 15/30 or 0.5. If the total benefit is $3,000/month, the marital portion is $1,500/month. If the non-owning spouse is awarded 50% of that, their share would be $750/month.
Final Salary and Post-Divorce Growth
Even though the pension might not be payable until years after divorce, the non-owning spouse still benefits from factors like final average salary (FAS) or service credits that trace back to marital contributions. The Coverture Fraction ensures that their share grows proportionately with the marital portion of the benefit, but not beyond it.
Why It’s Fair
This approach recognizes that both spouses contributed—financially or otherwise—to the earning of retirement benefits during the marriage. Utilization of the Coverture Fraction prevents the non-owning spouse from losing out on a valuable asset that was built with marital resources, while also respecting the separate nature of post-marriage, separate factors and contributions.
If you or somebody you know wants to learn more about property distributions incident to separation and divorce, our team at Modern Legal is here to help.
Please note: these educational materials are based on North Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Jordan Wideman is a compassionate family law attorney at Modern Legal, driven by a lifelong passion for helping others. Coming from a family rooted in public service, Jordan brings empathy, strength, and dedication to every client. A proud first-generation attorney, Jordan uses personal experience and deep community ties to guide families through their most important challenges—because to Jordan, family is defined by love, not just blood.
