Skilled Divorce Attorneys Dividing Retirement and Investment Accounts in Wheaton, IL
If you have significant marital assets invested in stocks, pensions, and retirement accounts, dividing them during a divorce requires assistance from experienced attorneys and financial experts. You will be best served by a law firm with the knowledge and resources to determine who has rights to these types of complex assets.
Our asset division lawyers in DuPage County and Kendall County have considerable experience with high net-worth divorce and sophisticated assets. In addition, the firm works with financial advisers and tax experts, when necessary, to provide clients with the knowledge they need to make informed decisions.
Division of Investments and Retirement Accounts
When a couple divorces, all marital assets must be divided, including those held in:
- IRAs and 401(k) accounts
- Investments, stocks, or bonds
- Pensions
In divorce cases involving retirement accounts or other valuable investments, the court will likely favor a distribution of assets that allows both parties to maintain adequate resources for retirement. We will protect your rights to these assets, keeping in mind that retirement accounts may have a non-marital component and considering the tax consequences that would result from an early disbursement of a retirement account.
To avoid tax penalties for early disbursement of certain retirement accounts, you can work with your plan administrator to get a Qualified Domestic Relations Order (QDRO). We can assist you with QDROs, as well as with the valuation of your retirement and investment accounts. This type of careful planning can result in a better divorce settlement for both spouses.
Equitable Distribution in the Division of Retirement Accounts and Investments
Illinois follows a system of equitable distribution, meaning marital property is divided fairly, though not always equally, between spouses. Retirement accounts and investment portfolios are often among the most valuable assets in a marriage, and dividing them correctly requires careful attention to both timing and tax consequences.
Accounts such as 401(k) plans, pensions, and IRAs accumulated during the marriage are generally considered marital property, even if only one spouse's name is on the account. Dividing these accounts often requires a Qualified Domestic Relations Order, which allows funds to be transferred between spouses without triggering early withdrawal penalties or immediate tax liability. Investment accounts, including brokerage accounts and stock holdings, must also be valued accurately, since their worth can fluctuate based on market conditions between the date of filing and the date the divorce is finalized.
Courts consider factors such as each spouse's financial situation, contributions to the marriage, and future needs when dividing these assets. Working with a financial professional alongside your attorney can help ensure that any division accounts for tax implications and long-term financial stability rather than focusing only on the immediate value of each asset.
Setting Aside Investments in a Prenup or Postnup
Prenuptial and postnuptial agreements can address how investment accounts and other assets will be treated if a marriage ends. Spouses who enter a marriage with substantial investment portfolios often implement these agreements to name certain accounts as separate property, protecting them from division in case they become mixed with marital assets.
For an agreement to hold up in court, both spouses must enter into it voluntarily and provide full financial disclosure. Consulting an attorney before drafting or signing one of these agreements can help protect your investments going forward.
Contact Our Wheaton, Illinois Retirement Asset Division Attorneys
We understand that each couple's financial and tax circumstances are unique, so contact us to discuss your finances with an experienced attorney. To schedule a free consultation, please contact our Wheaton, IL retirement asset and investment account lawyers or call 630-344-6525. We have offices in DuPage County and Kendall County.