Illinois Divorce Pension Calculator
Estimate the marital portion of a pension and a potential share for the non-pension holder in an Illinois divorce.
Commonly 50%, but can vary based on negotiation/court discretion.
Understanding the “Coverture Formula”
In Illinois, the “coverture formula” or “fraction method” is commonly used to determine the marital portion of a pension. This formula identifies what percentage of the pension was earned during the marriage.
The formula is:
Marital Fraction = (Months of Pension Accrual During Marriage) / (Total Months of Pension Accrual)
Only this marital fraction is typically considered marital property subject to division. The court then determines an equitable (fair, not necessarily equal) percentage of *this marital portion* to award to the non-pension holding spouse. Our calculator allows you to input this desired percentage.
Important Considerations:
- Defined Benefit vs. Defined Contribution: This calculator is primarily structured for Defined Benefit plans (traditional pensions). For Defined Contribution plans (like 401(k)s), the calculation of the marital portion might involve different valuation methods (e.g., tracing contributions and gains during marriage).
- QDRO/QILDRO: A Qualified Domestic Relations Order (QDRO) or Qualified Illinois Domestic Relations Order (QILDRO) is a crucial legal document required to divide pension benefits without incurring tax penalties. This calculator does not generate these orders.
- Specific Plan Rules: Each pension plan (e.g., Illinois State Retirement Systems like SERS, IMRF, TRS, or private employer plans) has its own unique rules and requirements for division.
- Actuarial Valuation: For complex pensions or high values, an actuarial valuation by a financial expert is often necessary to determine the accurate present value.
Disclaimer:
This “Illinois Divorce Pension Calculator” is provided for informational and estimation purposes only. It is not intended to provide legal, financial, or tax advice, nor does it guarantee specific outcomes in a divorce proceeding. Pension division in Illinois is complex and depends on many factors, including specific plan rules, court discretion, and negotiated settlement agreements. You should always consult with a qualified Illinois divorce attorney and a financial advisor or actuary for accurate and personalized advice regarding your specific situation.