After a divorce in Illinois, one spouse could receive alimony from the other, also known as spousal maintenance or support. But what about pensions? Are you entitled to the other party’s pension after divorce? Learn about this topic in this article, and talk to our divorce lawyer in Chicago Michael C. Craven if you need help with divorce issues.
Illinois Is An Equitable Division State
Illinois has an equitable division rule for divorces, meaning the judge will divide the couple’s property based on what is fair under the case circumstances. It could be a 50/50 division, but that is not necessarily the case. A vital part of the equation is determining what is marital property and what is separate property. Usually, an asset is marital property if it was obtained during the marriage.
What About Retirement Accounts And Pensions In An Illinois Divorce?
In Illinois, retirement accounts, including pensions, 401(k)s, IRAs, and others, are subject to equitable division. For example, if one spouse receives a pension when they retire, the other could be entitled to a percentage, based on the circumstances. However, a pension cannot necessarily be directly divided in the divorce. Instead, one party could receive a percentage of the other party’s pension based on various factors, including how long the marriage was.
If the divorce court determines that part of a person’s pension should be paid to the other, that party would need to ensure they get their part. This can be accomplished with a Qualified Domestic Relations Order (QDRO). This court order divides retirement accounts without leading to penalties and taxes. The QDRO could be used to demonstrate the rights of one spouse to receive part of the pension of the other.
The QDRO is usually entered into when the divorce is final, and it will typically be submitted to be approved by the retirement plan administrator. This will be accompanied by the marital dissolution order and provided to the judge for their signature.
Other Issues With Retirement Accounts In An Illinois Divorce
As noted above, retirement accounts, including pensions, are usually divided as other assets, but there are special situations that you should keep in mind. One issue with pensions is that the retirement benefit may not be payable until a future date, such as the plan participant’s retirement. Another issue is that pensions that do not pay benefits until a future date can end up being worth zero if the spouse who has the pension dies before the payments start. Also, as mentioned, withdrawing money from a retirement account can trigger taxes and penalties.
It can be challenging to determine the best course of action when it comes to dividing retirement and pension accounts. Therefore, you should work closely with your attorney to determine the valuation and other factors before deciding on this important matter.
Contact Our Divorce Lawyer In Chicago
If your ex-spouse receives a pension, you could be eligible for a portion after your divorce. For details about what you may be entitled to from your spouse’s retirement, please contact our divorce lawyer in Chicago Michael C. Craven for legal assistance at (312) 621-5234. Our attorney will ensure that your marital assets, including retirement accounts, are divided equitably.
