How Will My Retirement Assets Be Split During My Illinois Divorce?

 Posted on December 08,2020 in Divorce

If you have ever seen any television show or movie about a couple involved in a divorce, you have probably seen the typical depiction of the pair arguing over who gets things like the home, the cars, certain household items, or even custody of the children. Many people going through a divorce, even in real life, forget about what is often one of their most valuable and important assets -- their retirement fund. In Illinois, you and your spouse are required to divide the value of any asset that is considered to be a marital asset, which could include a portion of both you and your spouse’s retirement fund. An Illinois divorce lawyer can help you understand your rights to any retirement funds that you or your spouse may own and how to establish ownership to those funds.

Determining if the Plan Is Marital Property

In Illinois, marital property is defined as any property that is acquired by either spouse during the time of the marriage, with a few exceptions. Retirement funds can be all marital property, all non-marital property, or a combination of both. If a spouse began a retirement fund and made contributions to that fund before the marriage, that portion of the contributions would not be subject to division, while the rest would be. However, if the retirement fund was excluded by a valid prenuptial or postnuptial agreement, then the entire retirement fund would be considered non-marital property.

Using a QDRO to Divide Retirement Funds

Once you and your spouse come to an agreement as to how your retirement funds will be distributed, you will have to put it in writing and make sure the funds are actually distributed when the time comes. To ensure this, you will have to get a qualified domestic relations order, or QDRO, which is a legal document that verifies an alternate payee’s right to receive payouts from the fund. As a legal document, the QDRO must contain certain specific information and clear instructions on how to pay out the distributions; otherwise, the document may not be valid. At the Law Office of Ronald L. Hendrix, P.C., your attorney will not only be able to assist you with negotiating a distribution agreement with your spouse, but they will also ensure the legal side of the agreement is taken care of so you can rest at ease.

Contact a Naperville Divorce Attorney 

Getting a divorce can feel overwhelming at times, especially if you are dealing with a difficult spouse or other extenuating circumstances. However, it is crucial that you do not forget about important issues, such as allocating your retirement funds. Our DuPage County asset division lawyers understand how confusing and stressful managing the legal side of a divorce can be, which is why we will do everything we can to help. Contact our team at the Law Office of Ronald L. Hendrix, P.C. by calling 630-355-7776 today to set up a free initial consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2086&ChapterID=59