DuPage County Divorce and Retirement Asset Attorneys
Experienced Guidance with Divorce and IRAs, 401Ks and QDRO/QILDROs
One of the most contentious issues around divorce is division of property. In Illinois, all marital property is subject to fair and equitable distribution as determined by the court. This includes residences, bank and investment accounts, family owned businesses, and retirement accounts. When it comes to divorce and retirement accounts, many couples are not aware that individual accounts such as IRAs, 401Ks and pensions may be considered part of marital property with distribution governed by a Qualified Domestic Relations Order (QDRO) or Qualified Illinois Domestic Relations Order (QILDRO).
At Momkus McCluskey LLC, our divorce and family law group has extensive experience with issues involving divorce and retirement accounts. Our attorneys have handled even the most complex divorces with high net worth couples and unique asset valuations. Our in-depth knowledge of related practice areas such as business law, estates, trusts and asset protection planning, civil litigation and many others give us an understanding of the big picture and how to untangle the complicated financial matters often involved in divorces. Our team is responsive and compassionate, advocating aggressively for the interests of our clients.
Divorce and Retirement Accounts: How is the Property Divided?
IRAs, 401Ks and pension plans can be included in the property division of the divorce if these accounts were set up during the marriage. Things can get more complicated if the accounts were set up before the marriage began but significant contributions were made while the couple was married. In such cases, the assistance of a qualified legal professional is needed in determining what portion of the account should be considered marital property.
When retirement accounts are set up, there is only one payee: the individual contributing to the account. When an IRA, 401K or pension plan is determined to be marital property (either fully or partially), a QDRO must be entered to create or designate an alternate payee, the ex-spouse of the contributing individual. The QDRO spells out what portion of the retirement plan is to be paid out to each spouse. Couples may also choose how to receive payments, whether they be in a lump sum or in monthly payouts.
If one of the spouses has a pension plan within the Illinois public retirement system, a QILDRO will be issued. QILDROs are similar to QDROs, but they have separate terms and conditions that are more restrictive. In instances when one spouse has a private pension plan and the other a public plan, both a QDRO and a QILDRO may be necessary.
At Momkus McCluskey LLC, our legal team takes the time to work through the retirement accounts and other assets of the divorcing spouses to ensure that our clients end up in the best possible financial position. For a consultation with one of our attorneys, contact us today at 630-434-0400. We provide advice and counsel from our team of experienced and compassionate divorce lawyers in DuPage County and serve Lisle, Naperville, Wheaton, Downers Grove and surrounding communities.