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Anderson and Associates, P.C.

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Orland Park Divorce Lawyer for Division of Pensions

Palos Heights divorce property division attorney

Divorce Attorneys Assisting With Dividing Investment Accounts and Retirement Funds in Tinley Park

Over the course of a marriage, a couple can acquire a wide variety of physical and financial assets, and during divorce, this marital property must be divided equitably between both spouses. Retirement accounts and pension plans can be some of the most valuable assets that a couple owns, and correctly dividing the funds in these accounts is essential, since ownership of these assets will provide spouses with the financial resources they need later in their lives.

At Anderson & Associates, P.C., our family law attorneys have a great deal of experience helping couples reach a resolution to the issues that arise in their divorce cases. We understand the concerns that must be addressed when dividing valuable assets like retirement funds, and we can ensure that the law is followed correctly in these cases.

Valuation of Retirement Funds

Retirement accounts generally fall into one of two categories, which are valued differently when dividing assets during divorce:

  • Defined Contribution Plans - In a retirement account such as a 401(k) or IRA, a person will make regular contributions, and their employer may also match a certain percentage of these contributions. The balance of the account is considered marital property, and it will typically be split equally between divorcing spouses.
  • Defined Benefit Plans - Pension plans provide employees with a regular payment after their retirement, and these payments will continue for the rest of their life. Since the total amount and number of payments is likely unknown at the time of divorce, it can be more difficult to put a value on pension plans. Typically, when a person receives pension payments, their former spouse will be eligible to receive 50% of the marital portion of these payments. For example, if a person worked in a pension-eligible position for 40 years, and they were married for 10 of those years, the marital portion of their pension would be 25%, and their former spouse would be entitled to receive half of that 25%, or 12.5% of their pension payments.

Dividing Investment Accounts

Following divorce, the balance of retirement or investment accounts or the payments from pension plans will typically be distributed between spouses using a Qualified Domestic Relations Order (QDRO). This type of order allows a spouse to withdraw or transfer these funds without being required to pay taxes or other penalties.

Contact a Cook County Divorce Lawyer

Determining how to correctly divide marital retirement accounts can be a complex matter, but doing so is essential for protecting each spouses' long-term financial security. At Anderson & Associates, P.C., we will work with you to ensure that these assets are valued correctly and assist with using a QDRO to distribute funds following divorce. Contact our Orland Park division of marital property attorneys today at 708-226-9904 to schedule a free consultation. We serve clients in Tinley Park, Homer Glen, Oak Forest, Palos Heights, and throughout Cook County and Will County.

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