The necessity to divide retirement accounts often comes as a shock to people going through divorce. While your 401k account, IRA or pension may be in your name alone, any assets accumulated during your marriage are considered marital property and are subject to equitable division.
For many families, retirement assets are the most significant property to be divided in divorce. For the experienced representation you require in dividing 401k and other retirement accounts, contact Lake Toback in Chicago, Illinois. We are prepared to expertly manage any issue that may arise.
What Are My Options For Dividing Retirement Accounts In Divorce?
Retirement assets often consist of two types:
- Assets accumulated prior to the marriage, which may be non-marital property and are not subject to division
- Assets accumulated after the marriage, which is marital property and is subject to division
Our attorneys enlist the assistance of highly qualified experts such as actuaries who will determine which portion of a retirement account is marital property. Then we typically obtain a qualified domestic relation order (QDRO), which recognizes right of your spouse to receive his or her share of the benefits payable.
You and your spouse may find it in your mutual interest to swap retirement assets for other assets. For example, a spouse may elect to receive equity in a home rather than his or her share in a 401(k) account. In swapping marital property, it is critical to understand the tax implications. Retirement assets may be subject to higher tax rates than other types of assets and may also be subject to penalties for early withdrawal.
Contact Our Illinois Divorce And 401(k) Division Attorneys
Lake Toback is located in the heart of Chicago's Loop. Our office is five blocks west of Lake Shore Drive and 10 blocks east of I-90/94, at the southeast corner of Washington and Dearborn streets. To speak with a premier Chicago retirement funds divorce lawyer at Lake Toback, call 312-288-8985 or contact us by email.