How Retirement Assets Are Divided During a Divorce in Illinois
There can be many points of contention during a divorce. However, retirement assets are often a significant source of disagreement, especially for those who have worked hard to save for their golden years.
In Illinois, the retirement assets earned during the marriage are subject to equitable distribution during a divorce. Equitable distribution means that assets must be divided fairly among both parties, but not necessarily equally.
Of course, a skilled St. Charles divorce attorney can help you better understand your rights, and how your particular retirement assets may get divided during a divorce in Illinois.
Identification & Evaluation of Retirement Assets
The first step in dividing retirement assets during a divorce is to identify them, along with all of the assets that are considered part of the marital estate. In Illinois, any assets acquired by either spouse during the marriage is considered marital property and subject to equitable distribution.
This can include your 401(k)s, IRAs, pensions, and other such retirement accounts. Since these are some of the most valuable assets for most people, they are a major point of concern during a divorce in Illinois.
After identification, the next step is to determine the value of each asset of the marital estate, including retirement assets. This can be a complex process, especially for pensions and other defined benefit plans.
Division of Retirement Assets
Once the retirement assets have been identified and valued correctly, they must be divided fairly between the spouses, either through negotiations or court order. In Illinois, this typically involves using a Qualified Domestic Relations Order (QDRO) form to divide retirement accounts such as 401(k)s and IRAs.
A QDRO is a court order that directs the administrator of a retirement account to divide the funds between the spouses according to the fair terms of the divorce settlement.
For pensions and other defined benefit plans, the division of retirement assets can be a bit more complex. The court may order the plan to be divided between the spouses or may award a portion of the plan's value to the other spouse.
Contact a St. Charles Divorce Attorney Today
The division of retirement assets during a divorce in Illinois can be complex, but we hope this article shed some light on the process and helped you understand it better.
If you want to learn more about division of retirement assets during a divorce in Illinois, contact our skilled Kane County divorce attorneys for help. Call 630-584-5550 for a free initial consultation.