Protecting Retirement Accounts in a Divorce

Protecting Retirement Accounts in an Illinois Divorce

When dividing up assets in a divorce, people usually think of the house, the car(s) and bank account(s). What doesn't likely come to mind are 401(k)s, pension plans and other retirement accounts. However, the value added to a retirement account during the marriage is part of the marital estate. Retirement accounts should not be overlooked as their net worth may well exceed the value of a couple's home or any other of their assets.

Alternatively, a court can issue a Qualified Domestic Relations Order (QDRO) that directs a pension administrator to send checks to both spouses. The amount is based on a predetermined percentage. AQDRO provides a non-employee spouse the protection a divorce settlement agreement does not. While an agreement may or may not be specific and may require additional litigation to enforce, a QDRO is a court order sent directly to a pension administrator who simply cuts a second check for a specified amount.

Because a plan administrator must also approve a QDRO, administrators can usually provide standardized QDRO forms. However, standardized forms may not cover all unique circumstances and it is better to not leave things up to chance. To protect your share in a separation, consult a divorce attorney specializing in QDROs to discuss your situation and your options.

Modifying Illinois Child Support Orders

Illinois child support orders can always be modified. Both custodial and non-custodial parents can request the amount be increased or decreased so long as they can show a "substantial change in circumstances" justifying their formal request. While courts consider a number of factors before issuing a child support order, everything ultimately comes back to the best interest of the child(ren) and the non-custodial parties' ability to pay.

Following changes to the Illinois child support law that went into effect in July 2017, child support in Illinois is calculated by determining the amount of money required to care for a couple's children based on the parents' combined income. Each parent's contribution toward this amount will be determined based on their individual net incomes, as well as the amount of parenting time each parent has with their children.

The ordered amount must be paid. Nevertheless, a non-custodial parent may ask an Illinois court to reduce his or her payment amount as long as they can show a "substantial change in circumstances" to justify the request. The change could be a recent disability, the loss of a job or any other new situation (since the last order was made) that makes the current order financially unfair. Payment should never be reduced unless and until the court orders a modification.

A custodial parent may request an increase in payment from the non-custodial parent, but the same "substantial change in circumstances" standard applies. The custodial parent must be able to show that the substantial change (such as the non-custodial parent getting a raise or a bonus, the child becoming disabled or simply having increased financial need) makes the current support order unfair to the child.

In either situation, the party asking for a modification of the previous order must file a Petition to Modify Child Support with the court. The court will generally schedule a hearing for the party that filed the petition to present evidence showing the claimed substantial change and the other party to argue for the current order to stay in place. The court will make a decision after considering the totality of the circumstances on both sides.

Though the process sounds simple in theory, it can be complicated and involve a significant amount of money. If you are either seeking additional child support or fighting against an increase, contact an experienced attorney to discuss your situation and your options.

Planning for Insurance and Retirement After Divorce

A divorce throws all sorts of things into chaos. As though recovering from the emotional devastation of ending a marriage was not enough, as a recent divorcee, you will have to spend a significant amount of time rebuilding your financial arrangements to suit your new life as single people.

Some of these changes are more pressing than others. If you are going through a divorce, you will want to address your insurance and retirement needs as soon as possible.

Find New Health Insurance

If you were covered under your own employer-sponsored health insurance policy during the marriage, you may not have to change much. However, if you were covered under your spouse's policy, you will need to find new coverage.

Employer-sponsored spousal coverage terminates on divorce. If you need to, you can seek a temporary extension of that policy through COBRA. However, COBRA is very expensive and you will have to pay the full premium yourself. It is a good idea to find individual coverage as soon as possible.

Your kids, however, are a different story. After a divorce, children are still entitled to coverage under a parent's policy, even if that parent does not have primary child custody.

Consider Your Life Insurance Needs

Life insurance is another important consideration. During the marriage, you and your spouse probably had life insurance policies that would provide compensation if one of you died. After the divorce is finalized, you may want to consider changing the beneficiary on your life insurance policy.

However, the fact that you are no longer married may not be a good enough reason to terminate your coverage. If you are depending on your ex for financial support, you could wind up in a dangerous situation if he or she dies or becomes unable to work.

Insurance coverage issues should be dealt with the final divorce agreement. Your divorce lawyer can help you craft a solution that best fits your individual needs.

Plan For Your Retirement Goals

Retirement is also a major issue, especially if you are one the thousands of couples who divorces in late middle age every year.

You will be entitled to Social Security retirement benefits based on your spouse's income if you were married for at least 10 years and the benefits based on your own income would be less than those based on your spouse's. Your receipt of benefits does not lessen your spouse's benefits in any way. You will, however, lose eligibility if you remarry.

Of course, Social Security benefits are only a small part of most people's retirement plans. Most private retirement accounts-like 401(k)s and IRAs-will be divided as marital property during a divorce. Talk with your attorney to make sure this issue is resolved in a way that supports your retirement goals.

Illinois to Stiffen Speeding Penalties on July 1, 2013

Speeding is one of the most common offenses in Cook County and many Chicago residents do not take speeding tickets seriously. This is because few Illinois drivers know that speeding can be charged as a Class A misdemeanor, which is the same level as drunk driving and battery offenses.

Up until this summer, probation and fines were the most common penalties for individuals caught driving more than 40 mph above the speed limit. A new law, which will go into effect on July 1, 2013, will stiffen the penalties for speeding and restrict a court's ability to place speeders under supervision.

The new speeding law is called "Julie's Law" and is named after a 17-year-old girl from Frankfort, Illinois, named Julie Gorczynski.

Julie was killed in a southwest suburban Orland Park car accident in 2011. She was a passenger in a Jeep that was hit on its passenger side by a 21-year-old with a history of speeding violations.

Authorities say that the driver was traveling 76 mph in a 40 mph zone at the time of the accident. The new law was enacted because the legislature speculated that Julie's accident would not have happened if judges had not been so lenient on the driver's prior speeding violations.

Julie's Law will bar judges from ordering supervision for drivers charged with speeding more than 30 mph over the speed limit. Previously, judges could order supervision for all drivers except those caught traveling 40 mph or more above the speed limit. The law also bars judges from ordering supervision for individuals driving more than 25 mph over the speed limit in an urban district.

The downward revision in the supervision limit will likely result in more Cook County residents jailed forspeeding violations, which the courts hope will prevent some speeding-related car accidents. An investigation by the Chicago Tribune revealed that the driver in Julie's case was improperly given supervision for three of his seven speeding cases.

Julie's Law was signed last summer along with several other bills, including HB5101, which bans commercial drivers from using cellphones; SB2488, which bans cellphone use in work zones; and HB5099, which prohibits taking cellphone pictures within 500 feet of an emergency scene.

Being charged with a speeding offense can be an overwhelming situation. The Cook County law office ofDonald J. Cosley represents Illinois residents facing even the most serious speeding violations.