Retirement Accounts and Property Division in a Colorado Divorce
In this short lesson from Divorce at Altitude, Ryan Kalamaya explains how retirement accounts are divided in a Colorado divorce and why these assets can be some of the most valuable—and most misunderstood—parts of property division. Using the fictional couple Eric and Melanie Wolff, Ryan shows why taxes make retirement funds different from cash in a bank account, and why divorcing spouses often treat retirement accounts as a separate asset class when negotiating an equitable division.
Ryan also highlights common complications, including premarital contributions that may be separate property, the challenge of locating old account statements, and the need for specialized orders to divide qualified plans. He emphasizes a critical drafting issue: whether the division is based on a percentage or a fixed dollar amount, since account values fluctuate. The episode closes with an important reminder that Social Security benefits are not divided as marital property, even though they can affect the overall financial picture.
Episode Outline
Why Retirement Accounts Matter in Divorce
How retirement savings can be one of the largest marital assets after the family home.
Taxes Make Retirement Different From Cash
Why a 401(k) balance and a bank account balance are not equal after taxes.
Separating Retirement as Its Own Asset Class
How attorneys often divide retirement accounts separately to account for tax treatment.
Premarital Contributions and Separate Property
How retirement savings from before the marriage can complicate division.
Tracking Statements and Proving Balances
Why missing historical statements can make premarital claims harder to support.
Qualified Plans and Special Division Rules
When a formal court order is required to split certain plans.
QDRO Basics
Why a Qualified Domestic Relations Order is often needed and usually handled by a specialist.
Percentages vs Fixed Dollar Amounts
Why the wording matters when account values rise and fall with the market.
Social Security and Divorce
Why Social Security is not divided as marital property, even though eligibility rules may still matter.
What is Divorce at Altitude?
Ryan Kalamaya and Amy Goscha provide tips and recommendations on issues related to divorce, separation, and co-parenting in Colorado. Ryan and Amy are the founding partners of an innovative and ambitious law firm, Kalamaya | Goscha, that pushes the boundaries to discover new frontiers in family law, personal injuries, and criminal defense in Colorado.
To subscribe to Divorce at Altitude, click here and select your favorite podcast player. To subscribe to Kalamaya | Goscha's YouTube channel where many of the episodes will be posted as videos, click here. If you have additional questions or would like to speak to one of our attorneys, give us a call at 970-429-5784 or email us at info@kalamaya.law.
************************************************************************
DISCLAIMER: THE COMMENTARY AND OPINIONS ON THIS PODCAST IS FOR ENTERTAINMENT AND INFORMATIONAL PURPOSES AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE. CONTACT AN ATTORNEY IN YOUR STATE OR AREA TO OBTAIN LEGAL ADVICE ON ANY OF THESE ISSUES.
