If you and your spouse will soon be getting a divorce, you probably know that you will be expected to divide your marital property between you. While you may not know exactly how that process will end up, you may already be thinking about which spouse, if either of you, will get to keep the marital home, who will get which car, and how to split the household furniture. In the stress and confusion of the divorce proceedings, however, you may be overlooking a very important—and possibly very valuable—asset. Experts claim that retirement investment accounts are the most commonly forgotten assets in divorce cases nationwide
Retirement Savings and Plans
Before marital property can be divided, both you and your spouse should provide one another with a full accounting of all of your assets and debts, even if you think he or she already knows about them. In some cases, this may require calls to old employers inquiring about the status of employer-funded retirement programs or plans. You may learn that you have forgotten about a 401(k) plan or similar account that was opened years ago. The same may be true for your spouse, and the money in such accounts, depending on when the accounts were funded, may be considered part of the marital estate.
Marital or Non-Marital?
When considering a retirement account, your spouse may claim that, since his or her name is on the account, the funds are his or hers. The law, however, says otherwise. According to the Illinois Marriage and Dissolution of Marriage Act, assets that were acquired by either spouse during the marriage are considered marital property in divorce. While there are a few exceptions, including property received by gift or inheritance, retirements accounts follow the standard guidelines. This means that any retirement contributions made during the marriage are considered marital property, regardless of the name on the account.
Of course, this makes for complex calculations in many cases. A financial professional may be required to determine the value of each portion of an account that was started prior to the marriage but was also funded with marital assets. If the account is generating interest or dividends, you will need to ensure such growth is fully accounted for as well. From there, you and your spouse—or the court—can determine how your retirement savings will affect the rest of the property division process.
Call a Skilled Attorney
For more information about retirement assets in divorce, contact an experienced Kane County divorce attorney. Call 630-549-0960 to schedule a free, no-obligation consultation at MKFM Law today.
Sources:
http://www.huffingtonpost.com/daniel-sentell/the-1-most-overlooked-divorce-asset_b_5922022.html
http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6100000&SeqEnd=8350000
