Park Ridge Divorce Lawyer for Retirement Accounts

Attorneys for IRAs, Pensions, and SEPs in Chicago and Elmhurst

Your divorce represents a major upheaval in your life, and you may feel its effects for years to come. While your immediate future is likely to be foremost on your mind during the divorce process, you will also want to take steps to protect your long-term financial security. This includes not only making sure you will have the resources you need when beginning your post-divorce life, but also ensuring that you will have the means to provide for your needs throughout the rest of your life. As you look toward your future, you will want to make sure to address the savings and benefits that will allow you to meet your needs after your retirement.

At Weiss-Kunz & Oliver, LLC, we understand the complex financial issues that you may need to address during your divorce, and we are prepared to advocate for your interests and help you protect your assets throughout the divorce process. We can help you negotiate a favorable marital settlement agreement, and if necessary, we will take your case to court to resolve the issue through divorce litigation.

Dividing Retirement Funds and Pensions

Pension benefits and money saved in retirement accounts may be considered marital assets if they were created, earned, or contributed to during your marriage. This means that they must be fairly and equitably divided between you and your spouse during divorce, along with the other property you own together. However, dividing these assets can be a complex matter, since the early withdrawal of funds from a retirement account can result in taxes and penalties, and pension benefits may not be available until the recipient retires.

Depending on the decisions made in your divorce settlement, a certain portion of the funds that are in a retirement account in your name may need to be transferred to your spouse (or vice versa). When transferring funds from a qualified retirement plan such as a 401(k) or 403(b), a Qualified Domestic Relations Order (QDRO) should be used. This type of court order allows for the withdrawal of funds without incurring penalties or taxes, and the funds can be rolled over into a new account in the other spouse's name.

Individual Retirement Accounts (IRAs) are considered non-qualified retirement plans. To divide funds in these plans, a "transfer incident to divorce" must be used, which allows funds to be transferred tax-free to an IRA in the other spouse's name. These types of transfers apply to Roth IRAs, SIMPLE IRAs, and SEPs.

Pensions are handled differently from defined-contribution retirement plans, since the actual amount of a spouse's pension benefits is typically not known at the time of divorce. Instead of receiving a certain amount of money at the time of the divorce, an ex-spouse may be entitled to receive a percentage of the benefits that will be paid following their former partner's retirement. This percentage is usually based on the amount of time the spouse worked in a pension-eligible position while married.

Contact a Cook County Retirement Account Division Attorney

Ensuring that you will have the funds you need to support yourself after retirement is one of the most important financial concerns that you will need to address during your lifetime. When you and your spouse have worked to build savings during your marriage, you deserve to retain your fair share of those assets after your divorce. At Weiss-Kunz & Oliver, LLC, we are prepared to advocate for you and help you maintain your financial security. To learn more about how we can help you achieve a positive outcome in your divorce, contact us at 312-605-4041. We assist with divorce cases throughout Cook County and DuPage County, including Chicago, Elmhurst, Burr Ridge, Skokie, Lincolnwood, Park Ridge, River Forest, Oak Brook, and Hinsdale.