How Can I Protect My Retirement Plans During My Illinois Divorce?

 Posted on May 06, 2020 in Division of Assets

Getting a divorce brings about all kinds of issues that you must deal with, both emotionally and financially. Though the emotional side can be difficult to manage, the financial side has a lot of bearing on how your life will turn out in the future. Financial issues can be especially important for older couples who are nearing the age of retirement. Retirement accounts are assets that are usually quite valuable to both spouses, setting the stage for disagreements over how the assets will be divided. Ignoring or forgetting your retirement accounts during your divorce could spell disaster for your financial future. If you are getting a divorce, be sure to take these necessary precautions to help protect your retirement plans.

Understand What You Are Working With

Before you make any decisions, you should fully understand what type of retirement accounts you and your spouse have and the rules that govern each account. Common retirement accounts include employer-sponsored plans such as a 401(k) and individual retirement accounts such as an IRA. Each type of plan has its own rules, especially when it comes to dividing and distributing the funds.

Speaking with a financial adviser can help you figure out how you should divide your plans and how you can do so while avoiding any penalties or tax repercussions. A financial adviser will also be able to help you make sure you understand your financial portfolio so you can make informed decisions.

Figure Out What You Will Need After Retirement

The next step is figuring out what you will need to live after you are retired. This is important to do because you want to make sure you will be able to survive off of the portion of the retirement plans that are allocated to you. A financial adviser can also help you plan for life after retirement and can also help you understand what you should budget for.

Make Sure Your Retirement Accounts Are Addressed in Your Divorce Decree

Retirement assets are not automatically taken care of in your divorce. You need to make sure you address your retirement concerns during your divorce so you and your spouse can negotiate it into your divorce decree. Likewise, you also need to make sure you follow through with the division of assets. Your divorce decree merely states how those assets should be divided. You should take care of your retirement accounts as soon as possible.

Consult with an Elmhurst, IL Gray Divorce Attorney for More Help

If you are nearing retirement age and you and your spouse are planning on getting a divorce, it is more important than ever that you thoroughly address your retirement accounts in your divorce decree. At Weiss-Kunz & Oliver, LLC, we understand how crucial it is that you divide your retirement accounts in a fair manner to allow you to live comfortably after your divorce. Our skilled DuPage County gray divorce lawyers will help you understand your rights so you can get the most out of your retirement benefits. To schedule a consultation, call our office today at 312-605-4041.

Sources:

https://www.investopedia.com/articles/investing/072915/how-protect-your-retirement-after-divorce.asp

https://www.thebalance.com/how-retirement-plan-assets-are-divided-in-a-divorce-1289260