Going through a divorce is one of the most difficult things a person can experience. On top of the emotional toll, having to figure out the division of assets and property can be draining, especially when dealing with high-value assets. You might find yourself asking how property and retirement accounts are divided in Colorado high-asset divorces.
Understanding the Colorado high-asset divorce laws around these divisions can help you have a stronger case and protect your future interests. Working with an experienced high-asset divorce attorney from Fuller & Ahern, P.C., can be even more valuable. We can use our experience and skills to create a plan for your interests and circumstances.
Separate vs. Marital Property
In Colorado, not all property is divided during a divorce. Many people think that retirement accounts are separate property if they’re not jointly owned, but this isn’t always the case. The law is more complex than that, even if people want to protect their accounts, since Colorado is the fourth-greatest state for retirees in 2026.
In general, property and accounts are considered separate if they were:
- Acquired, created, or gained value before the marriage.
- Received as personal gifts.
- Obtained through inheritance.
Any separate property is not eligible to be divided during a divorce. However, even if an asset meets those criteria, it might still be marital property if it was at any point combined with marital funds. Careful recordkeeping and management of funds can prevent this.
Retirement accounts can be even more complicated. Even if they were acquired before marriage and never mixed with marital funds, they might be partially marital property. Any value gained on retirement accounts during a marriage is considered marital property. Therefore, the entire account might not be divided, but the value accrued while the marriage was valid would.
This value can be high. Just one of Colorado’s retirement options, the SecureSavings Program, has seen people save over $194 million in assets. Determining how to divide these assets is difficult.
How Is Marital Property Divided?
In the Centennial State, divorce does not always create a 50/50 division of assets. Courts attempt to reach an agreement that is equitable, protecting the future financial interests of both parties. The guidelines for this division are laid out in Colorado Revised Statutes § 14-10-113. However, this can still leave room for negotiation and different plans.
When you hire a high-asset divorce lawyer, they can determine what property is eligible to be divided, explain how you can keep what you need, and answer further questions about your divorce.
Even if a retirement account is eligible to be divided, it’s possible to keep the account by offering other marital assets of equal value. The same can be done with most marital assets, which provides a way to avoid dividing valuable assets. These kinds of negotiations are why high-asset divorces can be so difficult to work out.
If you and your spouse agree on what you see as a fair division, you may come up with a plan together. However, if that plan doesn’t fit Colorado’s laws, the courts may still step in to make the division more equitable.
Understanding Colorado QDROs
When a case involves the value of retirement accounts (Colorado has a median retirement savings of $100,000), there are specific legal processes to handle them. One of these is a Qualified Domestic Relations Order.
Most employer-provided retirement plans, including a 401(k) and 403(b), require a QDRO. This order outlines how the plan administrator should divide the account, without triggering early withdrawal penalties.
Typically, IRAs won’t require a QDRO. However, in some circumstances, the plan administrator might want one. Either way, a divorce lawyer can look over your plan and catch any mistakes.
FAQs
Do You Need a Lawyer to Divide Retirement Accounts in a High-Asset Divorce?
A lawyer is not strictly required to divide retirement accounts in a high-asset divorce. However, they can prevent mistakes, work toward an equitable division, and advocate for the assets you need to keep. Your high-asset divorce attorney can provide thoughtful counsel, skilled representation, and knowledgeable reassurance throughout your high-asset divorce case.
What If My Spouse Hides Retirement Accounts?
Some spouses may try to conceal assets and retirement accounts to keep them for themselves. However, this is not allowed in divorce proceedings. If you suspect concealment, options like a formal discovery or other legal interventions can uncover hidden assets. Your spouse may also face financial and civil penalties for hiding them.
How Are Complex Assets, Like Business Interests, Stock Options, and Investment Portfolios, Divided?
Complex assets are divided according to an equitable division, but figuring out the exact division can be challenging. Often, this will involve negotiations so that one spouse keeps certain assets, rather than dividing the assets directly. This requires careful valuation of the assets, which can benefit from the aid of both legal and financial professionals.
Is a QDRO Required for All Retirement Accounts?
No, a QDRO is not required for all retirement accounts, but most employer-provided accounts will require one. If a court issues a QDRO, it is important to follow its instructions exactly. Not doing so could result in early withdrawal penalties or other consequences, which can affect your financial future and your plan for a simple, protected retirement.
Hire a High-Asset Divorce Lawyer to Protect Your Future
Working through a high-asset divorce comes with many challenges; only some of them are legal ones. Thankfully, an experienced attorney can handle the legal challenges, enabling you to deal with the other issues a divorce may bring.
Working with clients across Douglas County for decades, Fuller & Ahern, P.C., has the experience needed to support a high-asset divorce case. We personalize our approach to each case so that every one of our clients gets the attention they need.
Don’t wait to get help navigating the complexities of high-asset divorce, property division, and retirement accounts. Contact our office today to schedule a consultation and tell us more about your circumstances.
