Retirement assets accumulated during a marriage in Illinois are typically considered marital property subject to division during divorce proceedings. This encompasses various retirement plans, including pensions, 401(k)s, and other deferred compensation accounts. The process of dividing these assets involves determining the portion earned during the marriage and then allocating it equitably between the divorcing parties. For example, if a pension was earned throughout a 20-year marriage, the portion attributable to those 20 years might be considered divisible, while any portion earned before the marriage might remain the property of the original account holder.
Equitable distribution of retirement funds ensures both spouses benefit from savings accrued together during the marriage. Historically, pensions were often overlooked during divorce, leaving non-employee spouses without access to significant financial resources. Recognizing the critical role these assets play in long-term financial security, courts now routinely address their division. This acknowledgment helps prevent financial hardship for divorced individuals, especially women who may have sacrificed career opportunities to support the family.
