Pension Division - "Hunt" Formula
Pension assest acquired during the marriage in Colorado are subject to equitable division in a divorce. Although there are many ways of measuring the value of the assets, one basic method is for a defined benefit plan (montly payment such as military pension) is to apply the "Hunt" formula. Drawn from In re Marriage of Hunt, 909 P.2d 525 (Colo. 12/18/1995), the court set out a "time rule" formula for division of pension. Essentially it is Years of Service During Marriage x Monthly Benefit x 1/2 Years of Total (After Taxes). By peforming this calculation, a party can divide a pension has a monthly benefit such as military pension, state employee pensions, teachers pensions, or some other programs that still offer fixed benefit options.
Total months of military service at retirement Example:
- Assume a couple was married for exactly 12 years (144 months) overlapping creditable military service, and the servicemember retired at 20 years (240 months).
- The marital portion would be 144 / 240, or 60% of the servicemember's disposable retired pay. The former spouse would therefore receive half of that, or 30%.
- The servicemember receives the remaining 70%, which consists of the other half of the marital share (30%), plus his separate property interest (40%).
Read Entire Opinion Here: In Re Hunt, 909 P.2d 525
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