How are Retirement Accounts Divided in a Divorce?
Same Day & After Hours Appointments Available | In-Person or Zoom Meetings | Over 20 Years Experience
If you are getting ready for a divorce, it is important to know that any retirement accounts that you or your spouse have, even if they are in your individual names alone, may be subject to distribution as part of your divorce case. In many ways, retirement benefits are handled like other assets in a divorce case, but there are some specific issues that you should know about when it comes to distributing these assets under Illinois law and federal law. One of our Illinois property division attorneys can provide you with more information.
Retirement Accounts and Equitable Distribution
In general, you should expect that your retirement accounts will be handled like any other property in your divorce case in terms of needing to classify these assets as marital or separate property, and then determining what an equitable distribution between the spouses looks like, which is required under the Illinois Marriage and Dissolution of Marriage Act (IMDMA). Any retirement assets acquired prior to the date of marriage will typically be classified as separate property and will not be divided in the divorce, while retirement benefits accrued during the marriage will be classified as marital property and will be subject to division.
In some cases, a premarital agreement will say that retirement benefits are specifically excluded from property division in the event of a divorce. If the agreement is enforceable, then retirement benefits will not need to be distributed between the parties, even if they would be classified as marital property.
Handling Commingled Retirement Accounts
Sometimes retirement accounts are commingled, meaning that they have qualities of both separate property and marital property. This often happens when one of the spouses opens the account prior to the date of marriage and continues contributing to it after the date of the marriage or when years worked toward pension benefits began prior to the date of the marriage. In these circumstances, the court will usually trace out amounts to determine what portion is separate and which is marital.
Avoiding Early Withdrawal Penalties through QDROs and QILDROs
Most retirement benefits must be distributed differently from other types of marital assets. More specifically, money held in 401(k) accounts, 403(b) accounts, and other types of retirement accounts will incur a penalty for early withdrawal. To avoid the penalty, these assets can be distributed with a Qualified Domestic Relations Order (QDRO). Some pensions must be divided with a QDRO, or if they are associated with the State Employees Retirement System, then through a Qualified Illinois Domestic Relations Order (QILDRO). The distribution of assets held in IRAs will usually need to be handled by the account manager, including for both traditional IRAs and Roth IRAs.
Contact an Illinois Property Division Lawyer Today
Dividing marital property in a divorce can be difficult and complicated, but an experienced Illinois property division attorney can help you. Do not hesitate to get in touch with our firm to find out more about property division in a divorce and some of the specific issues that are likely to arise in the distribution of retirement accounts and pensions. Contact Reifman Law Offices for more information about the equitable distribution of marital property and how our firm can help.
At Reifman Law Offices,
we will take the weight of dealing with family legal issues off of your shoulders.
Call Us 847-229-8433
Related Articles
What Our Clients say about us
Professional, communication was excellent, and super fast and easy. Highly recommend!
Not all lawyers are created equal. That being said, most lawyers I personally encountered only cared about dragging things out and making themselves richer at the expense of the people that they were representing. Mr. Arkady Reifman shines above the...
Arkady helped me from day 1 he was great from helping ease my peace of mind during all the high conflict negotiations with my EX. My case took FAR to long for what it should have been but not because...
Arkady took over in the middle of my divorce. Found him by chance, but couldn't be happier. He is very reasonable in prices, follows up promptly, but most of all he was understanding for every issue I wanted to bring...
I’m very thankful to Arkady for his assistance with my divorce! He is very knowledgeable and was always prompt with responses. I would recommend him to anyone who needs family attorney help!
Arkady Reifman is an excellent divorce attorney who delivers a high-quality service. He helped me with my case with personal attention to details, responsiveness to questions, and very good communication skills in court and in writing letters. He also speaks...
Great lawyer, to the point and gets things done.
Affordable and very helpful , gets back to you asap and updates you in timely manner , Thank you so much for your help ... If you're looking for a lawyer that has you in mind REIFMAN will not disappoint,...
Great attorney, Always available and responsive and will give the best advice!
Firstly, I want to thank Mr. Arkady Reifman for the amazing and professional services he provided me with. Whenever I had a question, he explained thoroughly and carefully and adjusted to my circumstances when I didn't understand he always did...
Arkady Reifman is an excellent attorney who really goes above and beyond for his client, I'd trust him with anything, do not hesitate to call him.
In a divorce, you need advocates. Advocates that are willing to listen, empathize with your situation and quickly ascertain what rights and entitlements one has. I was fortunate enough to be paired with Arkady Reifman. From our first meeting, I...
Very professional, straightforward and empathetic. I went through one of the most difficult times in my life and was glad to have Arkady by my side throughout the process. I was very impressed by the great level of attention that...
Arkady handled my divorce case several years ago and I would, and have, recommended him to my friends and family. I hired Arkady after another attorney has botched my case. Not only was Arkady professional and knowledgeable, he took the...
Arkady handled my divorce case. He has done a great job understanding my needs and was able to prepare a divorce contract that covered the detailed scenarios for what was needed. As a result, my divorce process was less painful...
Arkady took care of my divorce case. He has done an amazing job understanding my needs and was able to prepare a divorce contract that covered the detailed scenarios of what was needed. As a result, my divorce process was...
I was seeking a simple uncontested divorce and I came to the right place. The consultation was over an hour and was free. Arkady took the time to understand my situation and guided me through the process which others I...
I contacted Arkady for an uncontested divorce. I received a detailed extensive free consultation and was able to figure out the remainder of the details I needed to work out with my spouse in order to finalize the process. With...
I hired Arkady to help get some rights back that I should not have lost during my divorce. Ex-wife (who has full custody of our child) told daycare that my current wife could not pick up my daughter at daycare....
I am thrilled with my results. Arkady was exceptionally professional. He was able to find a resolution for my complex situation where I thought there was no solution. He is a strong professional with a thorough knowledge of the law...
Very Reasonable rates, easy process, and thorough explanation. Arkady was recommended to me for an uncontested divorce. I had recently met my future husband and needed to get an uncontested divorce as soon as possible. Arkady provided an excellent flat...
Reasonable Rates, dedicated service, and excellent results. I had a very difficult divorce, Arkady was able to put the correct protective orders in place, got a great Guardian ad Litem for my child and helped me gain full custody. Arkady...
Professional, compassionate and knowledgeable. I worked with Arkady on my uncontested divorce. We originally thought one set of documents was going to do it for us. However, my ex hired an attorney and I needed to protect my interests. After...
I had four divorce attorneys and one real advocate. My divorce lasted for several years and I went through multiple divorce attorneys in the process. Finding that most just want to drag their feet and get paid. Arkady proved otherwise,...
I interviewed multiple firms before I decided on Arkady Reifman. After interviewing Arkady I had a very comfortable feeling and I knew that I was going with the right professional for my situation. Arkady understood the challenges and concerns I...
Arkady is a great attorney. He listens very well, commits great focus to your case and works for the best possible outcome. It is very refreshing to meet such a hardworking and compassionate advocate. I am impressed at how knowledgeable...
Arkady Reifman was recommended to me by a relative and I'm happy I decided to go with him to represent me in my divorce case. His fees are reasonable, communication was clear and to the point, and he explained the...
We contacted Arkady to help get a divorce settlement for my guy. It had been almost a year and his original divorce attorney did nothing to help. We gave him our retainer and he worked diligently to help us. Only...
Arkady Reifman is a seasoned and professional attorney. I appreciate his help in providing counsel which was effective in the completion of my case.
Mr. Reifman has handled with great discretion and high competence several matters of importance for our family and we highly recommend him.
Arkady Reifman represented me in my divorce case. He was always very supportive through a painful time in my life. I feel secure and confident every time after conversation with him. He also was always very prompt to respond to...
Thank you Mr. Arkady Reifman for representing me in my divorce case. With your guidance and experience of the law. I would recommend you to family or friends or anybody who ask for a family lawyer.
Great attorney, professional, exceeded my expectations, very thankful!!!
Attorney Arkady Reifman was professional on working on my case. Answer all my questions with everything I had. Highly recommend this Attorney
If you are in need of any legal service, talk to this firm first. Our family has used Mr. Reifman's service to resolve a complex child support matter that involved a defendant that tried every legal maneuver to delay his...
Arkady is an excellent attorney. He took my complex divorce case and handled it with compassion and pure professionalism. The result was far better than I had expected. Arkady handled my case effectively and made the process as painless as...
Contact Us Request a free consultation today !
We assist individuals and families in Cook, Lake, and DuPage counties.
Schaumburg Office
Northbrook Office
Attorney Advertising. This information is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Past results and testimonials are not a guarantee, warranty, or prediction of the outcome of your case, and should not be construed as such. Past results cannot guarantee future performance. Any result in a single case is not meant to create an expectation of similar results in future matters because each case involves many different factors, therefore, results will differ on a case-by-case basis. By providing contact information, users acknowledge and give explicit consent to be contacted via the methods of communication provided, including SMS. Message and data rates may apply. Message frequency may vary. Reply STOP to opt out.
NUVEW | Copyright 2025 All Rights Reserved | Accessibility Notice | Privacy Policy | Disclaimer | Resources | Sitemap