Divorcing in Wyoming?
Energy Royalties, Ranch Assets, Mineral Rights — Do You Know What's Marital Property?

Cheyenne: Affordable Capital City with Government & Energy Employment

As Wyoming's capital and largest city, Cheyenne offers affordable living, proximity to Denver, and stable government employment—creating very different divorce considerations than Jackson Hole.

Wyoming State Government Employment:

• Wyoming Retirement System (WRS): State employees participate in defined benefit pension providing lifetime monthly income
• Job stability: Government positions offer security even during energy downturns
• Health insurance benefits: State employees receive comprehensive healthcare coverage
• Retiree benefits: Some long-term state employees eligible for retiree health insurance—valuable for gray divorce
• Deferred compensation: Wyoming offers 457(b) and 401(k) plans in addition to pension
• Legislative session timing: Legislators and session employees have unique seasonal income patterns

F.E. Warren Air Force Base Impact:

• One of three U.S. strategic missile bases creates military-connected employment
• Federal civilian positions at Warren AFB provide stable income
• Military contractor employment in Cheyenne area
• Federal employee retirement benefits (FERS pension, TSP accounts)

Energy Sector Presence:

• Some oil and gas company offices in Cheyenne
• Energy services and consulting firms
• Utilities and power generation employment
• Variable income from bonuses tied to energy prices

Cost of living advantage:

• Median home price: $350K-$425K (affordable on single income)
• Property taxes: Reasonable and stable
• Rent: $1,100-$1,600 for 2BR apartment
• Living costs: 60-70% less than Jackson Hole
• Close to Denver: 40-minute drive for healthcare, culture, shopping, airport access

Cheyenne healthcare: Cheyenne Regional Medical Center provides comprehensive care, and Denver's world-class healthcare is 40 minutes away.

Jackson Hole: Ultra-Luxury Real Estate & Extreme Appreciation

Jackson Hole (Teton County) has some of the most expensive real estate in America. What was once an affordable western town has transformed into a billionaire's playground, creating massive wealth for long-term homeowners—and massive division challenges in divorce.

Jackson Hole real estate explosion:

• Extraordinary appreciation: Homes purchased for $400K-$800K in early 2000s now worth $2M-$5M+
• Limited supply: Grand Teton National Park and National Forest surround Jackson, preventing sprawl
• Ultra-wealthy buyer demand: Tech billionaires, Wall Street executives, celebrities drive prices to stratospheric levels
• Property tax burden: Teton County property taxes have skyrocketed with values (though still no income tax)
• Median home price: $2.5M+ in town of Jackson; $3M-$10M+ for desirable locations
• Affordable housing crisis: Local workers and retirees priced out entirely
• Vacation rental income: Jackson Hole vacation rentals can generate $100K-$500K+ annually

Critical gray divorce reality: Your Jackson Hole home is likely your single largest asset—possibly worth more than all retirement accounts combined. But can you afford to keep it on one income?

Affordability analysis for keeping Jackson property:

• Property taxes: $15K-$30K+ annually on appreciated property
• Insurance: $3K-$8K annually (high due to property value)
• Maintenance: $10K-$25K+ annually (aging homes, harsh winters)
• Utilities: $300-$600/month (heating costs in mountain climate)
• Total carrying costs: $35K-$70K+ annually just to own the home

Can you afford this on one income? If your retirement income is $60K-$80K annually, carrying costs alone consume most of your income—leaving nothing for food, healthcare, or travel. This math forces difficult decisions.

Tourism & Hospitality Industry Employment:

• Seasonal businesses: Hotels, restaurants, outfitters, ski companies operate 4-8 months per year
• High-end hospitality: Four Seasons, Amangani, and luxury properties employ managers with substantial compensation
• Jackson Hole Mountain Resort: Ski industry employment with housing benefits, season passes, 401(k) plans
• Outfitting and guiding: Fly fishing guides, hunting outfitters, mountain guides earn seasonal income
• Business ownership: Many families own tourism businesses—hotels, restaurants, guide services—requiring valuation
• Tip income: Service industry workers earn significant tip income (cash vs. reported)

Financial services and wealth management:

• Jackson attracts ultra-wealthy residents requiring wealth management services
• Trust companies, family offices, and financial advisors serve high-net-worth clients
• Some finance professionals relocated from NYC/SF to work remotely from Jackson

Option 1: Keep the Jackson Hole Home

This works if:

• You have substantial retirement assets beyond the home (ideally $1M+)
• You have ongoing income (part-time work, royalties, rental income from property)
• You're willing to rent out part of the home (casita, guest house, vacation rental)
• You can refinance to buy out spouse's equity AND afford payments
• The emotional value of staying in Jackson is worth the financial strain

This doesn't work if:

• Carrying costs exceed 40% of your retirement income
• You'd have to deplete retirement assets to buy out spouse
• You can't qualify for refinancing on one income
• You're sacrificing retirement security for a house

Creative solution: Some Jackson homeowners convert to vacation rental, live there part-time, and rent it out peak seasons to cover costs. This requires active management but can make the numbers work.

Option 2: Sell the Jackson Hole Home & Split Proceeds

Advantages:

• Capture appreciation (potentially $1M-$3M+ tax-free under primary residence rules)
• Both spouses receive liquid cash for fresh start
• Eliminate property tax and maintenance burden
• Clean break—no ongoing property disputes
• Flexibility to relocate anywhere

Disadvantages:

• Lose Jackson Hole lifestyle and community
• Lose future appreciation potential (Jackson likely to keep appreciating)
• May trigger capital gains tax if gain exceeds $250K/$500K exclusion
• Finding affordable replacement housing elsewhere
• Emotional attachment to home and community

Tax considerations: Primary residence exclusion allows $250K gain tax-free (single) or $500K (married filing jointly). If your Jackson home appreciated $1.5M, you might owe federal capital gains tax on $1M-$1.25M of gain ($150K-$250K in federal tax). But no Wyoming state tax saves you $100K+ compared to California or New York.

Option 3: One Spouse Keeps Jackson Home, Other Takes Retirement Assets

How this works:

• Spouse A keeps Jackson home worth $2.5M with $1.8M mortgage = $700K equity
• Spouse B receives $700K in retirement accounts to equalize
• Spouse A responsible for all mortgage payments, taxes, insurance, maintenance
• Spouse B has liquid retirement assets providing income

This works for Spouse A if:

• They have high ongoing income to afford mortgage and carrying costs
• They're younger and still working (can refinance in their name)
• They're willing to use vacation rental income to offset costs
• The emotional and lifestyle value justifies the financial burden

This works for Spouse B if:

• They don't want the hassle of property ownership
• They want to relocate to more affordable area (Cheyenne, out of state)
• They need liquid assets for retirement income
• They prefer financial flexibility over property ownership

Warning: This structure puts all real estate risk on one spouse and all market risk on the other. If Jackson real estate crashes (unlikely but possible), Spouse A loses. If stock market crashes, Spouse B loses. Diversification benefits are lost.

Tourism Business Valuation Complexities

Seasonal income volatility:

• Most Jackson tourism businesses operate 4-8 months annually with intense seasonal cash flow
• Summer season (June-September) and ski season (December-March) generate most revenue
• Shoulder seasons and off-season have minimal or zero income
• Weather, wildlife, and snow conditions create year-to-year volatility
• How do we value a business that earned $400K one year, $180K the next, $520K the third?

Personal goodwill vs. enterprise goodwill:

• Personal goodwill (not divisible): Business value tied to one spouse's reputation, skills, or relationships. Example: Renowned fly fishing guide whose clients book because of his expertise.
• Enterprise goodwill (divisible): Business value in brand, systems, location, permits, client database independent of any individual. Example: Established hotel with 20-year reputation and booking systems.
• Courts must determine what percentage of value is personal vs. enterprise
• This determination can swing business valuation by hundreds of thousands of dollars

Permits, licenses, and location value:

• Outfitter licenses: Wyoming outfitter licenses have significant value but may not be transferable between divorcing spouses
• Liquor licenses: Jackson liquor licenses are limited and valuable
• National Park permits: Special use permits for guiding in Grand Teton National Park are rare and valuable
• Real estate location: Jackson Town Square restaurant location worth far more than same business elsewhere
• Long-term leases: Below-market leases on Jackson commercial space have enormous value

Real property component:

• Many Jackson tourism businesses own valuable real estate—lodges, restaurants, shops on prime land
• Real estate may have appreciated even more than the business itself
• Separating real estate value from business operations value requires careful analysis

Post-divorce business continuation:

• Can the business operate successfully with only one spouse?
• If one spouse was the "face" (guide, chef, innkeeper) and other handled back-office, who gets the business?
• Buyout structures: cash payment, promissory note, revenue sharing, gradual transition
• Non-compete agreements: Can departing spouse start competing business in Jackson?

Energy Sector Compensation Packages

Base salary plus variable compensation:

• Petroleum engineers, geologists, and executives: $150K-$300K+ base salary
• Annual bonuses: 10-50% of base salary tied to production, safety, company performance
• Stock options and restricted stock units (RSUs) in publicly-traded energy companies
• Deferred compensation plans that vest over multiple years
• Sign-on bonuses and retention bonuses (are these marital property?)
• Relocation packages and housing allowances

Dividing energy sector compensation:

• Unvested stock options: If granted during marriage but not yet vested, they're still marital property (usually divided via coverture fraction)
• Deferred compensation: Payable in future but earned during marriage = marital property requiring QDRO or similar order
• Bonuses: Year-end bonuses paid after separation but earned during marriage are typically marital property
• Severance packages: If laid off during divorce, severance pay is usually marital property

Mineral Rights & Royalty Income

Wyoming's mineral wealth creates unique divorce assets:

• Oil and gas royalties from producing wells
• Coal bed methane (CBM) royalties in Powder River Basin
• Coal lease payments
• Trona (soda ash) royalties in southwest Wyoming
• Wind energy lease payments (growing sector)

Valuing royalty streams:

• Declining production: Oil and gas wells deplete over time—future royalties decline
• Commodity price volatility: Royalty value depends on oil, gas, coal prices which fluctuate wildly
• Depletion curves: Engineers can project production decline, but it's uncertain
• New drilling potential: Undeveloped acreage may have future value if drilled
• Discount rate selection: How do we discount uncertain future royalties to present value?

Inherited vs. purchased mineral rights:

• If you inherited mineral rights before or during marriage, they're your separate property
• BUT royalty income generated during marriage may be marital property (state-specific rules)
• If mineral rights were purchased with marital funds during marriage, they're marital property
• Tracing and documentation is critical

Stay in Jackson Hole?

Choose Jackson if:

• You have substantial retirement assets ($1M+) beyond the home
• You have ongoing income (work, business, royalties) to supplement retirement
• You're willing to downsize to more affordable Jackson property ($800K-$1.2M condo)
• The mountains, recreation, and lifestyle are non-negotiable for you
• You have deep community ties and social network
• You're healthy and active—can take full advantage of recreation opportunities

Don't choose Jackson if:

• Retirement income is limited ($40K-$60K annually)
• You'd have to deplete assets to afford living there
• You have health issues requiring frequent medical care (Jackson has limited specialists)
• You're not an avid skier/outdoor enthusiast
• You're choosing it out of stubbornness rather than genuine fit

Relocate to Cheyenne?

Choose Cheyenne if:

• You need affordable housing on limited retirement income
• You want proximity to Denver for healthcare, culture, family
• You need access to employment opportunities (government, military, energy)
• You have health conditions requiring regular medical care
• You prioritize financial security over mountain lifestyle
• You prefer city amenities over wilderness recreation

Cheyenne advantages for gray divorce:

• You can buy comfortable home for $300K-$450K (vs. $2M+ in Jackson)
• Property taxes, insurance, maintenance far more affordable
• 40 minutes to Denver for world-class healthcare, airport, shopping
• State government employment if you need part-time work
• More dating pool than Jackson (if that matters)
• Four distinct seasons without Jackson's harsh winter extremes

Leave Wyoming Entirely?

Think carefully before leaving Wyoming:

• Tax advantage lost: Moving to state with income tax means paying 4-13% state tax on retirement income, Social Security, capital gains
• Lifetime cost: Over 25-year retirement, state income tax could cost $100K-$300K+ compared to staying in Wyoming
• Capital gains tax: Selling investments or property after moving to high-tax state triggers state capital gains tax

When leaving Wyoming makes sense:

• Family ties (children, grandchildren) in another state
• Specialized medical care not available in Wyoming
• Climate preferences (warmer winters, ocean access)
• Cultural amenities not available in Wyoming
• Moving to another no-income-tax state (Florida, Texas, Nevada, etc.)

Healthcare Access Comparison

Cheyenne healthcare:

• Cheyenne Regional Medical Center provides comprehensive care including most specialties
• 40 minutes to Denver's world-class healthcare (University of Colorado Hospital, National Jewish Health, etc.)
• Good provider network with multiple primary care and specialist options
• Medicare accepted widely
• Reasonable healthcare costs compared to resort areas

Jackson Hole healthcare:

• St. John's Health provides good primary care and emergency services
• Limited specialist care—many residents travel to Idaho Falls, Salt Lake City, or Denver
• Excellent orthopedics (ski injuries common) but limited cardiology, oncology, etc.
• Small provider network can mean wait times for appointments
• Healthcare costs higher than Cheyenne due to high cost of living

For gray divorce with health concerns: If you have serious health conditions (heart disease, cancer history, chronic illness), Cheyenne's proximity to Denver may be critical. Jackson requires 5-6 hour drive to Salt Lake City for specialized care.