Dissolving a marriage usually leads to issues of property division. Spouses may be surprised to learn that this may include dividing retirement accounts. At the Law Offices of Nick Kulagin, our experienced family law lawyers can advise residents of DuPage County and Kane County by applying our knowledge of this complicated area of law. With 15 years of experience to guide us, our sophisticated Wheaton attorneys are committed to protecting your family, your home, and your business. Whether you are worried about how your retirement plan will be divided or just want to make sure you receive a fair share, we can help.The Division of Retirement Accounts
Under the Illinois Marriage and Dissolution of Marriage Act (IMDMA), retirement and pension benefits are often considered to be marital property. This is the term used to define all assets and debts accumulated over the course of the marriage. Certain conditions must be met for retirement accounts to be categorized as marital property. The benefits must have been acquired after the marriage, prior to the termination of the marriage, or prior to a declaration of invalidity of the marriage. When retirement accounts are considered marital property, they are subject to division at the time of divorce. Both spouses have a right to the funds, irrespective of whose name may be on the account.
We can work closely with tax experts, accountants, and other financial professionals to help divide complex retirement portfolios. Some of these may include 401(k) accounts, IRA accounts, corporate pensions, stock and bonds, stock options, profit-sharing plans, employee stock ownership plans (ESOP), deferred compensation plans, and thrift savings plans.
Illinois uses equitable division rules during the property division process. This simply means that marital assets must be divided fairly at the time of divorce. What is considered fair depends on many factors, including the length of the marriage, the ages of each spouse, the education and earning capacity of each spouse, the contribution of each spouse to the household, and any custody arrangements.
In most instances, a qualified domestic relations order (QDRO) is required to divide your pension and retirement benefits. A QDRO recognizes the right of your spouse to receive his or her fair share of the benefits. Additionally, QDROs specify the amount that should be paid to the other party, the percentage that should be paid, or the calculation that will decide the final amount. QDROs are extremely technical documents. If this paperwork is not completed accurately, there can be serious tax consequences and other penalties
It is important to note that, when filing for divorce in Illinois, if either party requires spousal support, retirement accounts may be taken into account by the court. Also, when determining the amount of child support and each parent’s income, the value of retirement benefits will be factored in to ascertain the amount and frequency of child support payments.Consult a Knowledgeable Lawyer for a Family Law Matter in DuPage or Kane County
Our divorce attorneys have the skill and experience to help people in Kane and DuPage Counties navigate the property division process. The Law Offices of Nick Kulagin is available to help you understand your legal rights and answer any questions that you may have. We also serve people from Naperville, Oak Park, Hoffman Estates, and Geneva, among other communities. Call us at 630-480-6399 or contact us online to set up a free consultation.