Present Value
Present value is what a future stream of money is worth in today's dollars, accounting for the fact that a dollar received years from now is worth less than a dollar today. In a Florida divorce, it most often comes up when dividing a pension or other retirement benefit that pays out over time, because the parties may need to convert those future payments into a single lump-sum figure to split assets fairly. An actuary or financial expert usually calculates it.
Last updated June 21, 2026
Legal Definition
Present value is the discounted current worth of a future payment or series of payments, derived by applying a discount rate that reflects time value of money and, for retirement benefits, mortality and vesting assumptions. Florida courts use it during equitable distribution under F.S. §61.075 to value defined-benefit pensions and similar future-pay assets.
Example
Because his pension pays out decades from now, the court relied on an actuary's present value calculation to offset it against the marital home.
Related Statutes
- 61.075
Related Terms
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