One of the biggest and most costly mistakes in a Colorado divorce or legal separation is the failure to understand and designate the QDRO valuation date in your separation agreement or Memorandum of Understanding. The calculation of earnings or losses begins as of the valuation date.
It is also one of the most disputed issues because it is not properly handled.
The valuation date is the date of the effective transfer of the retirement plan from the Participant to the Alternate Payee. This is the effective date of the division of the retirement account even though the QDRO is not done until weeks or months (or years) later. This is the date on which the plan administrator will begin to calculate and apply earnings (or losses as the case may be) and apply them to the percentage or dollar amount assignment.
If you don’t designate a valuation date, then CRS 14-10-113(5) applies.
The plan administrator has the computer records which are necessary to make that calculation.