Marriages between baby boomers have always been viewed as ideal relationships. These couples have been together for most of their adult lives and really show devotion for each other. Even though divorce rates for marriage couples have stabilized over the past several decades, they are on the rise among baby boomers. Divorce rates among couples over 50 have doubled in the last 20 years, according to a study by Bowling Green State University. The data also shows that during the 90s, fewer than one in 10 people who divorced were 50 or older. Two years ago, that divorce rate for baby boomers compared to others divorcing was one in four.
There are still lessons to be learned by baby boomers about marriage. Unfortunately, the lesson is concerning protecting yourself regarding retirement assets during a divorce. Most people do not know that when property is divided in Illinois that it is done according to factors like disparity of earning power, needs for future support and fault in the dissolution of marriage. This makes Illinois an equitable division of property state. So, regardless of who made contributions to a 401k plan, it could be allocated to either spouse.
This is where it becomes so important to draft a Qualified Domestic Relations Order, or QDRO. This is an order that signifies the payee of the split of a pension plan or retirement contribution plan. The alternate benefit of setting a designated payment plan is that the payee must pay any taxes associated with the divided income. If a QDRO is not in place, and your retirement fund is allocated to your ex-spouse, you could be responsible to pay for the taxes as well. There are many more reasons to file a Qualified Domestic Relations Order, which can be reviewed by your divorce attorney. Please contact a skilled divorce lawyer in Naperville to have a valuable guide through the difficulties of divorce.