What Happens with Divorce and Pension Plans?
Many people are concerned about divorce and pension plans and what will happen to those and any other retirement accounts upon finalization of your divorce. People seem to think that if the pension is solely in their name (which it typically is), then their pension is theirs and they do not have to share it with their spouse when they divorce. The Courts consider this an asset of the marriage however, and you will need to divide your pension rights after divorce with your spouse. If you both have plans, and they are of equal value, then it is likely that each of you will retain your own pensions. Illinois has established that all retirement and pension plans whether vested or matured, contributory or noncontributory, shall be treated like marital property. The classification and reimbursement principles in 750 ILCS 5/503(a) and 5/503(c) apply to retirement plans and pensions and divorce in Illinois. A pension that is established before the marriage, as...