Wheaton Retirement Asset Division Lawyers

Attorneys Addressing Retirement Accounts and Pensions in Wheaton, IL Divorce Cases

During a divorce, many different types of financial issues will need to be addressed. Many of these will be related to the division of marital property, and a careful evaluation of all financial accounts and assets will need to be performed. These may include retirement benefits, which often represent some of the most valuable assets accumulated by a couple during their marriage. In high net worth divorce cases, these issues may become even more complex due to the presence of multiple accounts, executive compensation packages, and pension benefits.

At Mirabella, Kincaid, Frederick & Mirabella, LLC, we work with our clients to make sure they understand how retirement benefits and related assets may be divided under Illinois law. We advocate for outcomes that will provide for our clients' needs while helping them maintain long-term financial security. Whether retirement assets may be tied to an employer-sponsored plan, an individually managed account, or a corporate executive package, we work to achieve outcomes that will protect our clients' financial futures.

How Our Divorce Attorneys Can Help With Retirement Assets

At Mirabella, Kincaid, Frederick & Mirabella, LLC, we understand that retirement savings often serve as the foundation of our clients' long-term financial stability. We can work with clients to review account statements, assess the marital and non-marital portions of retirement benefits, and ensure that all accounts and assets are properly disclosed. When dividing these assets, we can help to prepare the necessary legal instruments, such as Qualified Domestic Relations Orders (QDROs). By helping our clients navigate the complex process of dividing retirement assets, we work to ensure that they will have the financial resources they need in the future.

Retirement Assets to Address in a Divorce

Retirement accounts that either spouse acquired or contributed to during their marriage are generally considered marital property, even if the account is in only one spouse's name. When dividing marital assets, different types of benefits may be handled in specific ways:

• 401(k) Accounts: These employer-sponsored plans may be divided using QDROs, which will allow a portion of the funds in an account to be transferred to the other spouse without triggering taxes or penalties.
• IRAs: Individual retirement accounts are divided differently from 401(k)s. Transfers can be made through a process known as a "transfer incident to divorce," which will avoid tax consequences if these transfers are properly structured.
• Pensions: Defined benefit pension plans may be more complicated, because they represent a promise of future income rather than a current account balance. Actuarial valuations may be necessary to determine the present value of pension benefits. A QDRO or similar court order may be used to allocate a certain amount to a person's ex-spouse once benefits begin being paid.

Executive Compensation in a High Net Worth Divorce

For executives and high-earning professionals, compensation often extends beyond traditional salaries and bonuses. These additional benefits can represent significant assets that will need to be addressed during the divorce process. These forms of executive compensation may include:

• Stock Options: These may be vested or unvested, and they can carry substantial future value. Options granted during a couple's marriage may be treated as marital property, even if they will not vest until after the divorce.
• Deferred Compensation Plans: These arrangements may allow the income a person earns to be deferred until a later date. This can be beneficial for tax planning purposes while also providing financial resources that can be accessed after retirement. Deferred compensation earned during a couple's marriage is generally treated as marital property.
• Performance Bonuses and Incentives: Bonuses that are tied to a person's performance or the growth of a company may also be subject to division, depending on when they were earned and whether they were linked to marital efforts.

When addressing executive compensation, it will often be necessary to evaluate the future value of these benefits, determine whether they are tied to past or future employment, and consider tax-related issues. The financial resources available to a spouse who earns executive compensation may also play a role in decisions related to spousal support. A spouse's overall earning capacity and other financial resources they can access may be factors considered when determining the amount of support they may be required to pay to their former partner.

Contact Our Wheaton, Illinois Division of Retirement Benefits Attorneys

As you address financial concerns during your divorce, it is essential to work with an attorney who has experience in matters related to complex assets. At Mirabella, Kincaid, Frederick & Mirabella, LLC, we work with our clients to ensure that retirement benefits and compensation packages will be handled correctly in a property settlement. Our goal is to ensure that our clients will have the financial resources they need so that they can move forward successfully into the next chapter of their lives. Contact our Wheaton pension and retirement account division lawyers at 630-665-7300 to arrange a consultation and learn how we can help you protect your financial future.