Kane County Divorce Attorneys Protecting Retirement Assets
Retirement Plans, IRAs, and Qualified Domestic Relations Orders
Retirement assets, such as IRAs, 401(ks), and pensions can be valuable assets when a couple divorces. A marital estate will be divided equitably and all assets, including retirement accounts, are subject to division along with the rest of the estate. Dividing up retirement assets can be complex since State and Federal laws can becoming confusing.
The Stogsdill Law Firm, P.C. is a highly skilled law firm that assists clients in handling the division of assets including retirement plans. We effectively advocate for our clients' needs through addressing all matters of a marital settlement such as business assets, property, income, and retirement plans. When the division of marital assets cannot be negotiated, we will also fight for your needs through aggressive litigation in the courtroom.
Legal Experience Matters
Our law firm founder William J. Stogsdill drafted House Bill 1612, Public Act 90-731, which became effective on July 1, 1999. In his bill, Mr. Stogsdill addressed Qualified Domestic Relations Orders (QUILDROs) which allow the division of Illinois State Pension Plans to be included in proceedings for divorce. Mr. Stogsdill also drafted Senate Bill 433 which established that stock options received during a marriage are to be considered part of marital property. It also required that the Court allocate the division of the stock options at the time of the dissolution of marriage. (Senate Bill 433, March 2001, Public Act 92-306 modified and amended 750 ILCS 5/503, adding Section 5/503(b)(3) to the Illinois statute.)
Mr. Stogsdill also cooperated in amending the Illinois Marriage and Dissolution of Marriage Act. This amendment recognized that pension benefits provided by the Illinois Pension Code are considered marital property subject to division between divorcing parties regardless of whether the stock options are valued. (The amendment 5/503 of the Illinois Marriage and Dissolution of Marriage Act, sections (b)(1) and (b)(2), P.A. 89-712 went into effect on June 1, 1987.)
In 2011, Mr. Stogsdill and his son Will Stogsdill co-authored a chapter in the Illinois State Bar Association Family Law Handbook. The chapter is entitled, "Division of Retirement Benefits in Dissolution Proceedings.”
With our firm's experience in establishing and changing Illinois law, you can count on The Stogsdill Law Firm, P.C. to protect your marital assets before or during a pending divorce.
Dividing Retirement Assets in Divorce
Depending on the length of time you have worked and how much you have saved, retirement assets can make up a large portion of your marital assets. Any and all retirement plans that have contributed or accrued during marriage are up for division in the event of a divorce. Exceptions to that rule include clauses in a prenuptial or postnuptial agreement.
When dividing retirement assets, one of these two approaches can be chosen:
- The retirement funds from an IRA, 401(k), or pension can be split between the couple. If this division option is chosen, a Qualified Domestic Relations order (QDRO) may be needed to explain to an administrator how funds should be divided.
- One spouse can buy out the retirement plan values with another asset or collection of marital assets of the same value.
Regardless of approach, the only way to ensure you receive a favorable marital settlement is to make sure all retirement assets are appraised. Tax consequences should also be considered when dividing marital assets. Our attorneys are knowledgeable in helping clients avoid tax complications when dividing retirement assets during a divorce.
For more information on dividing retirement assets in a divorce, or help with your divorce case, contact The Stogsdill Law Firm, P.C. at 630-462-9500630-462-9500. Schedule a consultation with our skilled divorce lawyers today. From our main office in Wheaton, Illinois, our attorneys assist clients in Kane County and throughout Illinois.