Naperville Retirement Account Division Lawyer

Divorce Attorneys for 401(k)s, IRAs, and Pensions in DuPage County

The end of a marriage can often lead to a great deal of financial uncertainty. Not only is the divorce process itself costly, but following the end of your case, you may struggle to cover your expenses on a single income, especially if you are required to meet obligations such as child support or spousal maintenance. While you will want to ensure that your short-term financial needs will be met, it is also important to consider your long-term resources and understand how your divorce will affect your retirement savings.

The attorneys of Davi Law Group provide dedicated representation for divorcing spouses, and we can help you resolve any issues related to investments or pensions. We will work to ensure that you can reach a positive outcome to your case that will protect your financial interests both now and in the future.

Divorce and Retirement Accounts

While retirement accounts such as 401(k)s or IRAs are often in the name of one spouse, they are considered marital property if contributions were made to these accounts during the couple's marriage. As with other marital assets, they are subject to equitable distribution between spouses. However, if one or both spouses made contributions to these types of accounts before their marriage or after legal separation, only a certain percentage of an account's balance may be considered marital property.

Depending on the decisions made during the divorce process, the funds in a retirement account may be divided equally between the spouses, the full balance may continue being owned by one spouse, or another arrangement may be made. While early withdrawal of funds from a retirement account will usually result in taxes and other penalties, this can be avoided by using a Qualified Domestic Relations Order (QDRO), which is a court order that specifies how the balance of an account should be divided.

Divorce and Pension Benefits

If a spouse works in a career in which they earn pension benefits, a certain portion of these benefits will be considered marital property, and the other spouse will be entitled to receive a percentage of the benefits when they begin being paid out upon retirement. This percentage will depend on the amount of time the couple was married while the spouse worked in a pension-eligible position. For instance, if a person worked for 30 years before retiring, and they were married for 20 of those years, two-thirds of their pension benefits will be considered to be marital property. Their ex-spouse will be able to receive half of the marital portion of their benefit payments.

For employees who work for the State of Illinois, a Qualified Illinois Domestic Relations Order (QILDRO) must be used to allocate pension benefits between divorcing spouses. This order will specify the percentage of benefits that an ex-spouse will receive.

Contact our Wheaton Divorce Lawyers

You deserve your fair share of all the property acquired during your marriage, including retirement plans that either spouse contributed toward. To ensure that these matters are addressed properly, you should work with a skilled and experienced divorce attorney at Davi Law Group. We will explain your rights and help you negotiate a settlement that protects your financial interests.

We offer no-cost consultations, and we can meet with you at our offices in Wheaton, Naperville, Chicago, Plainfield, or Joliet. Contact us today by calling 630-580-6373. We assist with divorce cases in DuPage County, Will County, Kane County, Cook County, and Kendall County.