Wheaton, IL Divorce Attorneys for Retirement Accounts and Pensions

Lawyers for the Division of Retirement Assets in Wheaton Divorce Cases

During your divorce, you may be surprised to learn that your retirement accounts are subject to division. Protecting your hard-earned savings requires careful forethought and an advanced knowledge of Illinois divorce laws. A Wheaton, IL divorce lawyer can help you safeguard your pension benefits or retirement savings, working toward a favorable outcome on your behalf.

At Roberts PC, we have the experience and resources to represent you in complex property disputes, including the division of your 401(k) or pension. When you work with our firm, we will handle your case with care, making sure you get a fair valuation of your retirement savings.

Are Retirement Accounts Marital Assets?

If you established a retirement account prior to your marriage, it is likely to be considered to be your own separate property. If you established it during the marriage, then it is likely to be considered marital property. Marital property will be addressed during the property division process.

This sounds simple in theory. In practice, this can get easily complicated. For instance, if you invested in a retirement account before your marriage and continued to make contributions to it during the marriage, your spouse might be entitled to a portion of its value. There are very few ways to get around this aside from not making contributions to your retirement account during your marriage.

A prenuptial or postnuptial agreement can protect a retirement account's identity as separate property. Both spouses must enter into this agreement voluntarily for it to be legally enforceable. An attorney at Roberts PC can help you strategize the best ways to address retirement assets and other property during your divorce, making sure you take the right steps to protect your assets.

How Are Retirement Accounts Divided?

In Illinois, retirement accounts—and all other marital assets—are divided according to the principle of equitable distribution. The marital contributions to a retirement account or pension will be split fairly between both spouses, taking into account each spouse's contributions, the length of the marriage, and other factors.

Note that "equitable distribution" does not necessarily mean that your assets will be divided in a clean 50/50 split. The courts will consider your and your spouse's financial circumstances and your ability to support yourselves after the divorce is finalized.

The biggest hurdle of division will be determining how much of your retirement account is a marital asset. At Roberts PC, we work with qualified outside experts like forensic accountants to get an accurate appraisal of your retirement account.

Dividing Retirement Assets With a QDRO

Dividing a retirement account is not as simple as taking the money out and giving it to your spouse. When transferring funds from a retirement account into another account, the court may take certain precautions to avoid penalties.

A Qualified Domestic Relations Order (QDRO) is a legal mechanism that may be used to avoid the percent penalty that comes with withdrawing funds from a 401(k) before retirement. This order is then sent to the administrator of the retirement account, who will give final approval on any transfer of funds. At Roberts PC, we can help you draft an effective QDRO, moving the process along smoothly.

A QDRO may also be used to divide pension benefits. If you earned these benefits during your marriage, your spouse may be entitled to a portion of the payments you receive upon retirement. A QDRO will specify a percentage or dollar figure that will be paid to your spouse.

Meet With a Wheaton, Illinois Divorce Lawyer for Retirement Accounts

A divorce can be a great source of stress, especially when your assets are on the line. At Roberts PC, we will take precautions to protect your retirement account or pension in a divorce, advocating for the best possible outcome for you.

Moreover, we will do everything we can to keep your divorce out of court to save you time and money. If we cannot reach a settlement outside of court, we are more than prepared to litigate your case. To schedule a free consultation, call us at 630-668-4211 or contact us online.