Mokena Retirement Account Division Attorney

Divorce Lawyers Helping Divide Pensions and Investments in Orland Park and New Lenox

During your divorce, you will likely have a wide variety of financial concerns. When you combine these with the emotional difficulties of ending your marriage and the legal areas you must address, you may feel like you are struggling to overcome an avalanche of issues. During all of this, you will want to make sure you have the financial resources you need to protect your future. When resolving matters related to retirement funds and investment accounts, you need a skilled attorney on your side.

At Wakenight & Associates, P.C., we have more than 95 years of combined experience in divorce and family law cases, and our attorneys understand how to address the complex legal and financial issues that can arise. We can ensure that your rights and financial interests are protected when it comes to the money you have saved for retirement.

Pensions, Retirement Funds, and QDROs

During a divorce case, marital property must be equitably divided between spouses. This property includes any financial assets acquired by either spouse over the course of the marriage, including investment accounts, retirement funds, and pension benefits. In some cases, determining the value of these assets is straightforward; for example, the balance of a 401(k) account at the time of divorce can be divided equally between spouses, or it may be allocated to one spouse, while the other spouse retains ownership of assets with an equal value, such as real estate property.

Other types of assets, such as pensions, can be more difficult to place a value on since they cannot be immediately liquidated or divided between spouses. Instead, it may be necessary to determine the marital portion of future pension payments (for example, if a spouse works for a total of 40 years, and they were married for 10 of those years, the marital portion of the pension payments would be 25%). When the spouse begins receiving pension benefits upon retirement, their former partner may be able to receive 50% of the marital portion of those payments.

When dividing retirement account funds or pension benefits, a Qualified Domestic Relations Order (QDRO) should be used. This type of court order specifies a certain dollar amount or percentage of an asset that will be allocated to the former spouse of the plan holder or participant. By using a QDRO, funds can be withdrawn from a retirement account without the account holder incurring any penalties or taxes. The recipient may choose to receive this amount as a lump sum, in which case they will be required to pay taxes on that gain. However, they will likely prefer to roll over the amount into a retirement account of their own. Your attorney and financial advisor can help you understand your best options and how to address any tax considerations related to investments, as well as any other issues related to a high net worth divorce.

Contact a Will County Divorce Attorney

Concerns about retirement are just one of many issues you will need to understand and address as you work to reach a resolution to your divorce. The attorneys of Wakenight & Associates can provide you with the representation you need in these matters, advocating for your rights and helping you protect your financial future. Contact our office by calling 815-727-6144 to schedule a free consultation. We provide legal help to spouses from all walks of life in Mokena, New Lenox, Frankfort, Orland Park, Tinley Park, Oak Forest, Orland Hills, Homer Glen, Lockport, and Joliet.