Couples who are working through divorce in Colorado and who also have 401(k) accounts may be surprised to learn that their spouses may be entitled to a percentage of the account balance. The portion of 401(k) accounts that accrued during the marriage are considered to be marital property subject to equitable property division in divorce proceedings. The law allows the withdrawal of the amount ordered by the court without the early withdrawal penalties given in the event that both spouses…

In a Colorado divorce, marital property will be equitably divided between the two spouses. An equitable division is not necessarily equal. Rather, equitable division means that the division of property will be fair. Property that is included in the marital estate and thus subject to division is called marital property, while property that is excluded is separate property. Marital property includes most types of property acquired during the marriage, even if the property was only acquired by one spouse. There…