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 retirementExample:

  • 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%).

A Denver Divorce Mediator can assist you.  Contact Us today.