What You Need to Know About Protecting Retirement Accounts in Illinois Divorces

 Posted on June 30, 2023 in Division of Property

When going through a divorce, protecting your financial and emotional well-being is essential. Retirement accounts are one such asset that may be a key source of long-term financial security for you and your spouse. As a result, you may be concerned about what will happen to your retirement accounts now that you are getting divorced. If this sounds like you, contact a divorce lawyer to learn how you can protect your financial future as you move through your divorce.

Property Division and Retirement Accounts

If you live in Illinois, here is what you must know about protecting retirement accounts during the divorce and property division process, including:

• Illinois is an equitable distribution state – As such, Illinois courts aim to distribute marital property reasonably and fairly. Retirement accounts that each spouse owns usually fall within this property division process. Marital property is typically any property accumulated during the marriage, which includes retirement accounts that each spouse contributed to during the marriage. The court assesses the contributions of each party in arriving at this determination.
• Understand the different types of retirement accounts – In a divorce, retirement accounts may be divided through a Qualified Domestic Relations Order (QDRO). Such legal orders can be used to divide retirement accounts equitably. Once the divorce concludes, the QDRO will allocate a specific amount of the retirement funds to the spouse, who is not the primary holder of the account. There are many different types of retirement plans to consider, including 401(k)s, IRAs, and deferred compensation plans.
• Claim your share of retirement benefits – Once the retirement accounts owned during the marriage are assessed and valued, the marital assets can be divided. This is typically settled as part of the divorce agreement between the two spouses. According to Illinois divorce law, both parties to the divorce have a legal right to claim a portion of the retirement benefits obtained during the marriage depending on various factors, such as their contributions to the accounts and more.
• Work with a qualified divorce lawyer – Dividing retirement benefits in divorce can be complex, requiring a keen understanding of divorce law in Illinois. Your attorney will be invaluable as you look to determine what property is community and separate, as well as how such assets can be divided fairly.

Contact a Rolling Meadows Divorce Attorney

For skilled attorneys highly proficient in matters related to dividing retirement accounts, contact the experienced Arlington Heights divorce lawyer with Law Offices of Donald J. Cosley. Call 847-253-3100 for a free consultation.

Source -

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=004000050K1-119