Valuation and Cutoff Dates for Retirement Accounts in Kentucky: Separation, Filing or Decree

By the FigureMyTax Editorial Team · How we calculate

In a Kentucky retirement division, property acquired before a decree of legal separation is presumed marital and later property is excluded. The statute names no valuation date, so a settlement should name the dates for each account.

What date does Kentucky use to stop counting retirement benefits?

The statute presumes marital all property acquired after the marriage and before a decree of legal separation (KRS 403.190(3)), and property acquired by a spouse after a decree of legal separation is excluded (403.190(2)(c)). For a dissolution without a prior legal separation decree, the statute names no earlier cutoff, so the cutoff comes from your agreement or from the court. The Kentucky pension division calculator lets you test any service-month count.

Does a premarital pension count in Kentucky?

Property acquired before the marriage is not marital property, and the passive increase in its value is excluded to the extent it did not result from the efforts of the parties during the marriage (403.190(2)(e)). Service before the marriage therefore sits outside the marital fraction, which the calculator shows separately.

What about gifts and inheritances in Kentucky?

Property acquired by gift, bequest, devise or descent during the marriage, and the income from it, is excluded unless significant activities of either spouse contributed to its increase in value or the income (403.190(2)(a)).

When is the pension valued in Kentucky?

The statute names no valuation date. A settlement should name the valuation date and each account’s value on it, and say whether gains and losses after that date are shared.

Can an agreement change the rules in Kentucky?

Yes. Property excluded by a valid agreement of the parties is not marital (403.190(2)(d)), so a premarital or postnuptial agreement can change the retirement analysis.

Does a gift of retirement money count in Kentucky?

Property acquired by gift, bequest, devise or descent during the marriage, and its income, is excluded unless significant activities of either spouse contributed to the increase (403.190(2)(a)), so a retirement account funded by an inheritance needs its own tracing.

What if one spouse has no retirement benefits in Kentucky?

The symmetry rule keeps the spouses’ retirement benefits on the same footing: an exception or non-consideration for one spouse applies to the other, and the exception for the greater benefit cannot exceed the exception for the other (403.190(4)).

Can the court assign property before the division in Kentucky?

Yes. The court first assigns each spouse’s own property to that spouse and then divides the marital property in just proportions (403.190(1)).

Does the increase in value of a premarital account count in Kentucky?

The increase in value of property acquired before the marriage is excluded to the extent it did not result from the efforts of the parties during the marriage (403.190(2)(e)), so contributions during the marriage to a premarital plan can make part of its growth marital.

Can the other spouse waive a share in Kentucky?

A valid agreement can exclude property from the marital estate (403.190(2)(d)), so a spouse can give up a claim to a retirement account by agreement; get the plan’s requirements before signing.

How does the cutoff fit with the rest of the estate in Kentucky?

A retirement benefit is one asset in the estate. See the Kentucky property division calculator and the Kentucky alimony calculator. Maintenance is decided separately under 403.200 (KRS 403.200).

What should the paperwork say in Kentucky?

• The marriage date, the separation date and the dates used for the marital fraction.
• Each account and its value on a stated date.
• Whether gains and losses after that date are shared.
• The plan’s order requirements, such as a qualified domestic relations order.
• Any premarital portion claimed as non-marital.

Frequently asked questions

Official sources

• KRS 403.190: disposition of property
• KRS 403.200: maintenance
• 10 U.S.C. 1408: military retired pay in divorce
• 26 U.S.C. 414(p): qualified domestic relations orders
• 29 U.S.C. 1056(d)(3): ERISA domestic relations orders

This is general information, not legal advice. It is based on the cited Kentucky statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Kentucky attorney.