Dividing Pension or Retirement Accounts

In many divorce cases in the Denver area, either one or both spouses have at least one retirement or pension account in his or her name. Retirement and pension accounts tend to be titled in only one spouse’s name, and as long as they were acquired during the marriage or increased in value during the marriage, then they may be marital property subject to division.

Dividing a retirement or pension account is a lot different from dividing other forms of money or stock accounts. Assets held in retirement or pension accounts cannot be easily transferred from one party to another. Withdrawing from a retirement or pension account could  come with very significant tax or benefit consequences.

Dividing a pension or retirement account pursuant to a divorce decree may require a Qualified Domestic Relations Order, or a QDRO, as a way to divide an account without carrying any tax consequences. Certain attorneys or professionals often specialize in preparing QDROs for parties in a Divorce case in Colorado.  It is important to discuss the existence of any relevant marital retirement or pension accounts with your Family Law Attorney.

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