What Happens to Your NYSTRS Pension During a Divorce?

For many New York teachers, the NYSTRS pension is the single largest asset they will ever earn. If you go through a divorce, it’s natural to worry about how your pension is treated, how benefits are calculated, and what options you’ll be required to choose at retirement.

Understanding these rules ahead of time can help you avoid costly mistakes and ensure your retirement income stays on track.

Is a NYSTRS Pension Marital Property?

Yes. In New York State, the portion of your NYSTRS pension earned during the marriage is considered marital property and is subject to equitable distribution in a divorce.

This does not mean your former spouse automatically gets half of your pension. Instead:

• Only the service credit earned between the date of marriage and the date of divorce filing is considered marital.
• Service credit earned before the marriage or after the divorce filing remains your separate property.
• The final division depends on the terms of your divorce settlement or court order.

How Is the Pension Benefit Calculated?

NYSTRS uses a court-approved formula to determine the marital portion of your pension. Most divorces rely on a Majauskas formula, which generally works like this:

• Marital Service Credit ÷ Total Service Credit at Retirement × Pension Benefit

That percentage is then multiplied by the share awarded to your former spouse (often 50% of the marital portion, but not always). Importantly:

• Your ex-spouse does not receive benefits until you retire and begin collecting your pension.
• NYSTRS does not allow “cash-outs” or early distributions to satisfy a divorce settlement.

Example of How Divorce Impacts Your Pension

Assume the following:

• Teacher was married for 10 years
• Teacher works a total of 30 years
• Annual NYSTRS pension benefit at retirement: $70,000
• Divorce agreement awards the ex-spouse 50% of the marital portion (a common outcome, but not guaranteed)

Step 1: Calculate the Marital Fraction

• Marital Service Credit ÷ Total Service Credit at Retirement
• 10 ÷ 30 = 33.33%
• This means 33.33% of the pension is considered marital property.

Step 2: Apply the Marital Fraction to the Pension Benefit

• $70,000 × 33.33% = $23,333
• So, $23,333 per year of the pension is the marital portion.

Step 3: Determine the Ex-Spouse’s Share

• If the ex-spouse is awarded 50% of the marital portion: $23,333 × 50% = $11,667

Final Result

• Teacher receives: $58,333 per year
• Ex-spouse receives: $11,667 per year, paid directly by NYSTRS once the teacher retires

How and When Does an Ex-Spouse Get Paid?

NYSTRS will only pay a former spouse if there is a properly executed Domestic Relations Order (DRO) on file. Once you retire:

• NYSTRS sends payments directly to your former spouse.
• The payments come from your pension benefit, not from NYSTRS separately.
• If you never retire, your former spouse does not receive payments.

What Pension Option Must You Select?

This is one of the most critical—and often misunderstood—parts of a divorce involving NYSTRS.

If your divorce settlement awards your former spouse a share of your pension, NYSTRS typically requires you to select a joint-and-survivor option that protects your ex-spouse’s benefit.

Most commonly:

• You will be required to select a 100% Joint-and-Survivor option for the portion payable to your former spouse.
• This ensures that if you pass away first, your former spouse continues to receive their court-awarded share.

This requirement can:

• Reduce your monthly pension benefit
• Limit your ability to choose other pension options that might otherwise provide higher income

Can You Change Pension Options After Retirement?

No. Once you retire and select a pension option, that choice is permanent.

This is why coordinating your divorce settlement, DRO language, and retirement planning is essential—especially if you plan to remarry or rely heavily on your pension income.

What If You Remarry?

Remarrying does not eliminate your former spouse’s rights under a valid DRO. However:

• Your new spouse’s survivor benefits may be limited.
• In many cases, your current spouse cannot be named as a survivor for the portion already assigned to an ex-spouse.

This can have major implications for household retirement income planning.

Common Mistakes Teachers Make

Some of the most common (and expensive) mistakes we see include:

• Finalizing a divorce without understanding how NYSTRS calculates benefits
• Using vague or incorrect DRO language
• Not realizing how required pension options reduce retirement income
• Failing to coordinate pension decisions with 403b, 457b, and Social Security planning

The Bottom Line

Divorce does not mean you lose your NYSTRS pension—but it does mean the rules become more complex. The way your pension is divided, calculated, and paid depends heavily on how your divorce agreement is structured and how your retirement options are selected.

Because your pension may support you for 25–30 years in retirement, even small missteps can have lifelong consequences.

If you are a NYSTRS member going through a divorce or planning for retirement after a divorce, working with professionals who understand both NYSTRS rules and teacher-specific financial planning can make a meaningful difference.