If you’re considering a divorce, there are numerous financial issues you’ll want to be aware of and prepared for. Most couples have some sort of retirement account, either an IRA or a 401(k) that collects a percentage of wages each month and increases in value over time. When a couple divorces, these accounts may need to be divided.
The first step to take is to work with a qualified and experienced divorce attorney to determine how the financial aspects of the divorce will be handled. “Non-marital property includes 401(k) and other retirement accounts that were in place before the marriage, and in Illinois the original owner of the account gets to keep that portion,” explained Samuel J. Diamond, a divorce attorney with Diamond Divorce Law. “Any investments and earnings that occurred after the marriage are considered marital property and will be divided by the court, unless otherwise agreed upon by the parties.”
With a 401(k) account, there are additional considerations that must be taken into account. These include avoiding early withdrawal penalties, proper calculation of values, and establishing which portions, if any, are marital or non-marital. “At Diamond Divorce Law, we can assist in making sure a proper Qualified Domestic Relations Order (QDRO) is established, which allows each party to avoid certain fees and penalties when dividing the 401(k),” added Diamond. “You should never divide the account on your own. We help our clients navigate this tricky financial field.”
If you’re considering divorce and are wondering about your specific situation, contact Diamond Divorce Law to make sure you get your fair share. For more information about how your 401(k) account will be affected by a divorce, please visit https://dlfirm.com/is-401k-marital-property-in-illinois/.
For decades, the team at Diamond Divorce Law has been helping people navigate one of the most difficult times of their life. If you’re worried about losing your nest egg, please contact:
Samuel J. Diamond, J.D.
Diamond Divorce Law
(a division of Diamond Legal P.C.)