Cook County Retirement Asset Division Attorney

Chicago Lawyer for Handling Deferred Compensation Plans in Divorce

Regardless of how old you are, a divorce will almost certainly upset the plans you have made for the future. This is often especially true of the financial arrangements put in place for the years ahead. In a large percentage of divorce cases, deferred compensation plans, including pensions and other retirement savings, are recognized as marital property—at least partially. This means accounts and benefits such as these are generally subject to being divided during the divorce, but evaluating and allocating retirement assets can be quite complicated.

At The Law Offices of Curtis Bennett Ross, LLC, our team has the resources and tools to help you handle your retirement savings properly as your divorce proceeds. Attorney Curtis Bennett Ross has more than 30 years of divorce and family law experience, so he understands the laws that govern the divorce process in Illinois. Mr. Ross is also a Certified Public Accountant, and he has been court-appointed as a financial expert in a number of contested divorce cases. With his financial background, he is uniquely suited to assist you in managing complex money and property-related issues during your divorce, including those pertaining to retirement assets.

Investment Accounts, Retirement Savings, and Pensions

Under Illinois law, almost all property acquired by you or your spouse during your marriage is considered marital property and subject to division in the event of a divorce. Such property includes contributions and increases in the value of any investment accounts, vested pension plans, and deferred compensation accounts such as individual retirement accounts (IRAs) and 401(k) plans. Any contributions made or savings set aside prior to the marriage are usually considered to be non-marital or separate property.

There are many challenges associated with handling these types of accounts and plans during a divorce. For example, it is not uncommon for a person to already have a 401(k) account before he or she gets married. In such a case, a financial professional such as Mr. Ross is often employed to calculate the value of the account that is considered marital and the value that is deemed to be non-marital. Similarly, some pension plans and investment accounts are subject to unique vesting rules that could affect the portion of the account that is considered to be marital. Our firm can assist you with such calculations so that you can be sure you have the resources you need for the future.

You also have a number of options for taking your investments and retirement plans into account during your divorce. Depending on the situation, you might be able to keep your investments or savings as they currently are by giving your spouse a proportionally larger share of the rest of your marital estate. In many situations, however, the best course of action is to divide investment accounts and retirement savings so that both of you will get a portion.

Understanding QDROS in Downers Grove and Elmhurst

Depending on the type of account or accounts in question, dividing your retirement savings may require a Qualified Domestic Relations Order, or QDRO. Accounts that are legally recognized as retirement accounts are subject to very strict regulations and tax laws, and you cannot simply sign over a portion of such savings to your spouse following a divorce. Instead, a QDRO will need to be drafted and given to the plan administrator. Your QDRO should reflect the terms of your property division agreement—or the court's decision—and give directions to the plan administrator regarding disbursements from the account. With his family law experience and financial training, Mr. Ross is well-suited to help you with the development and implementation of your QDROs so that you can avoid potentially costly mistakes.

Get the Guidance You Need

If you have additional questions about dividing investments or retirement savings during divorce, contact The Law Offices of Curtis Bennett Ross, LLC. Call 312-984-1514 for a free, limited introductory consultation at our firm today. Mr. Ross and his team serve clients in Chicago, Bucktown, Lincoln Park, Greektown, River North, DePaul Area, Gold Coast, Andersonville, Wicker Park, Oak Park, Old Town, West Loop, and Wrightwood.