Aurora, IL Retirement Account Division Lawyers

Skilled Divorce Lawyers Addressing IRAs, Pensions, and Retirement Plans in Aurora, Illinois

When divorce becomes a reality for you and your spouse, you may realize that the plans you made for your future could be in serious jeopardy. This might be especially true of plans related to your retirement. Pensions, IRAs, and other retirement investments, in most cases, are considered to be marital property, regardless of which spouse actually "owned" the account. As marital property, retirement assets must be considered during the property division process of an Illinois divorce.

At The Law Office of Matthew M. Williams, P.C., we work to ensure that our clients will be able to address financial concerns correctly as they proceed with the divorce process. For more than 20 years, Attorney Matthew M. Williams has been helping clients understand the role that retirement accounts will play as they get divorced and the steps they can take to protect their financial interests. We can provide the guidance you need during your divorce so that you will have the resources you need to move forward and succeed in the future.

Retirement Savings as Marital Property

According to the law in Illinois, almost all property that either spouse acquired during a marriage will be considered part of the marital estate if the spouses pursue a divorce. This property includes any funds contributed to savings plans or investment accounts intended to fund a person's retirement. Any pension benefits that were earned during the marriage are also included. Benefits accrued or contributions made prior to the marriage are usually considered non-marital assets and therefore, they are not subject to division.

For many people, it can be incredibly challenging to evaluate pensions, savings accounts, and other retirement investments, especially if the accounts include both premarital and postmarital contributions. However, doing so can be crucial, since it can help a person ensure that they have a full understanding of the current value of their assets, how the value of their retirement benefits may change in the future, and what steps they can take to make sure they will be fully prepared to meet their needs in the years to come.

In many cases, it is necessary to enlist the help of independent financial experts who can establish an accurate value of the retirement assets in question. Determining the value of your retirement savings may require the consideration of many factors, including the type of savings plan, vesting status, and how soon you plan to retire. With the help of trusted professionals, our lawyers will ensure that you fully understand what portion of your retirement investments must be taken into account during your divorce.

We will also help you explore your options for dividing your retirement savings. Illinois law requires marital property to be divided equitably during a divorce, which means that each spouse should receive a fair and just share of the marital estate, but not necessarily an equal share. To accomplish this, you might be able to keep all of your retirement savings while offering your spouse a greater share of other marital property in return. You might also consider dividing your retirement investments so that each of you will have something set aside for the future.

Using QDROs to Divide Retirement Accounts and Benefits

Once you and your spouse have reached an agreement regarding how your retirement assets will be divided, you will probably need a Qualified Domestic Relations Order (QDRO) to facilitate the distribution of the funds. A QDRO will include the terms of your agreement or the court's decision regarding your retirement savings. For example, it may state that a percentage of the funds in a retirement account held by one spouse should be withdrawn and allocated to the other spouse.

The QDRO must be given to the administrator of the savings plan or the retirement account. They will follow its terms to distribute the funds in an account correctly. When a QDRO is used to distribute funds, this will prevent taxes or penalties from being assessed when withdrawals are made before the account holder is eligible to retire. A QDRO can also be used to distribute pension benefits between ex-spouses once the pension holder retires and begins receiving these payments.

A small oversight or error while drafting or implementing a QDRO could lead to expensive consequences. Our attorneys have the knowledge and experience to ensure that QDROs will be created and executed correctly. We will make sure a QDRO accurately reflects the terms of a divorce settlement or judgment, and we will oversee the implementation of the QDRO by a retirement plan administrator.

Contact Our Aurora, IL Divorce Lawyers for Retirement Benefits

If you have questions about how your retirement savings will be handled in your divorce, The Law Office of Matthew M. Williams, P.C. can provide answers. Call 630-409-8184 or contact our Aurora retirement plan division attorneys to arrange a free, confidential consultation with our team.