While the division of retirement accounts during an Illinois divorce can be complex, it can also be a crucial part of the division of assets process. Some spouses in the middle of a contentious divorce may simply walk away from their share of the retirement account just to have the matter over and done with. Other spouses may not believe the retirement account is worth enough to go through the headaches of splitting it.
Aside from the marital home, retirement accounts can be one of the most significant assets owned. Community property states divide marital assets—including retirement accounts—50/50. Equitable division states (like Illinois) divide marital assets fairly, if not evenly. Having a Naperville, IL division of assets attorney working for an equitable split of the marital assets ensures both parties are treated fairly.
Will I Have to Split My Retirement Evenly with My Spouse?
Under Illinois law, the part of a retirement account accumulated during the marriage is considered marital property and will be divided fairly during the asset split. If the spouses marry later in their careers, either one may have significant retirement savings that are considered their separate property. Retirement earnings from 401(k) contributions before the marriage are considered “non-marital,” while contributions and earnings after the marriage are considered “marital.”