111 Dean Street
Woodstock, Illinois 60098

815.338.0021

This information is presented as a service by
Gitlin & Kasper - Practice Limited to Family Law
111 Dean Street, Woodstock, IL 60098
(815) 338-0021

PENSION PLANS
  All through the marriage I worked for my pension plan. Does this mean now that there's a divorce I have to share it with my wife?
  Contributions to my pension plan at work started 15 years ago and I have been married for 10 years. Is my pension plan marital or non-marital?
  But the pension plan was paid for entirely by my employer. I didn't put any money into it. Does it still belong to the marriage?
  As to the portion of the pension plan which is marital property (earned during the marriage) is the court going to divide it 50/50?
  What is the difference between a defined benefit plan and a defined contribution plan and what is the difference as to how the courts treat them in divorce cases?
  How will I be assured that I receive my share of my spouse's pension plan?
  Statistically, I should outlive my husband. Can I have survivor benefits under his pension plan?
   
Q: All through the marriage I worked for my pension plan. Does this mean now that there's a divorce I have to share it with my wife?
A: Generally yes. A pension plan, to the extent it is earned during the marriage, is marital property. There are two ways to consider the value of the plan. One party can be awarded an interest in the plan and the other can be awarded property with a value that offsets the value of the pension plan. Otherwise, the parties can divide the interest in a pension plan through a document that is called a Qualified Domestic Relations Order (QDRO).
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Q: Contributions to my pension plan at work started 15 years ago and I have been married for 10 years. Is my pension plan marital or non-marital?
A: Both. The law favors a fraction approach to dividing a pension plan. This pension plan would be 5/15 non-marital and 10/15 marital, or 2/3 marital. A pension plan is marital whether it is vested or not.
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Q: But the pension plan was paid for entirely by my employer. I didn't put any money into it. Does it still belong to the marriage?
A:: Yes.
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Q: As to the portion of the pension plan which is marital property (earned during the marriage) is the court going to divide it 50/50?
A: No, not necessarily. As with other marital property the judge has broad discretion. There is no 50/50 rule. Most cases fall within the 60/40 range.
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Q: What is the difference between a defined benefit plan and a defined contribution plan and what is the difference as to how the courts treat them in divorce cases?
A: Think of a defined benefit plan as an annuity. Under this type of annuity there are payments which usually start at age 65 and are paid for the lifetime of the pension holding spouse. The other type of plan is a defined contribution plan. Think of this type of plan as a "what you see is what you get" type plan and the pension holding spouse will receive a plan statement from the employer which will show an account balance.
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Q: How will I be assured that I receive my share of my spouse's pension plan?
A: The court will award you your share of your spouse's pension plan by a document called a Qualified Domestic Relations Order (QDRO). This is an order which must be approved by the pension plan administrator and which directs the plan administrator as to how and when you will receive your benefits.
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Q: Statistically, I should outlive my husband. Can I have survivor benefits under his pension plan?
A: Yes. A properly drafted Qualified Domestic Relations Order is capable of insuring that the survivor receives benefits from the plan for the rest of her life. A properly drafted QDRO should make certain that it conforms to the intention of the parties and insures that payment will be made for the lifetime of the "alternate payee" (survivor).
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QUESTIONS & ANSWERS INDEX

I. About the Author
II. Before Marriage
III. Getting Started
  A. Decision Making
  B. About Lawyers
  C. Secondary Issues
IV. The Divorce Process
  A. Grounds
  B. Discovery
  C. Alternative Dispute Resolution
  D. Reconciliation
V. Interim Issues
VI. Child Support
  A. Generally
  B. Enforcement
  C. Post Majority Support
VII. Child Custody
  A. Between Parents
  B. Visitation
  C. Removal
  D. Grandparents and Other Non-Parents
VIII. Maintenance
IX. Property Division
X. Post Judgement Proceedings
XI. Non-Divorce Issues
XII. Adoption
  A. General Information
  B. Assisted
Reproduction
XIII. Selected Federal and Uniform Laws Affecting Family Law
     
     


 
Gitlin & Kasper provides the preceding information as a service to potential and current clients and to the public.  A person's accessing the information contained on this Internet site is not considered as retention of Gitlin & Kasper for any particular case, nor is it considered providing legal advice.  Gitlin & Kasper cannot guarantee the outcome of any case.
 

Gitlin & Kasper provides the preceding information as a service to potential and current clients and to the public.  A person's accessing the information contained on this Internet site is not considered as retention of Gitlin & Kasper for any particular case, nor is it considered providing legal advice.  Gitlin & Kasper cannot guarantee the outcome of any case.