Dividing Your Assets in a Divorce After Retirement

 Posted on May 31, 2025 in Divorce

If you are retired or nearing retirement when you get divorced, dividing your assets can be more complicated than it would likely be earlier in life. Getting your fair share of marital assets is also of utmost importance. 

In Will County, couples who spent decades building a life together often face the difficult task of separating shared retirement income, pensions, and property at a time when they cannot simply "earn it back." The stakes are high, and careful legal planning is critical.

As of 2025, Illinois divorce law still follows the principle of equitable distribution, meaning the court will divide marital assets fairly, though not necessarily equally. For people who have already stopped working, that process can feel particularly risky. This blog provides a brief overview of how marital assets are divided in divorce by our Naperville divorce lawyers. To read more about what is considered personal property rather than marital property, click here. 

What Counts as Marital Property in Retirement?

Under Illinois law, most property acquired during the marriage, including retirement benefits, is considered marital. This means that:

• Pensions, 401(k)s, and IRAs may be divided, even if they are in only one spouse’s name.

• Annuities and retirement income streams may be factored into the overall division of assets and any potential spousal maintenance award.

• The family home, which is often fully paid off by retirement, may be sold or offset with other assets to achieve an equitable result.

Asset division after retirement often requires the use of Qualified Domestic Relations Orders (QDROs) or similar legal tools to avoid tax penalties and protect the value of retirement funds. Social Security benefits cannot be divided by the court, but they may affect negotiations.

Can You Still Receive Alimony if You Are Retired?

When spouses cannot agree on whether one spouse should receive alimony, Illinois courts will still consider awarding it, especially if one spouse lacks sufficient income or retirement savings. Even in long-term marriages, however, maintenance is not guaranteed. Factors such as the length of the marriage, the standard of living, the age and health of both spouses, and the ability to become self-supporting all come into play.

How to Protect Your Personal Property in a Divorce

If you or your spouse received an inheritance, owned property before the marriage, or established a business that was never co-mingled, those may be considered non-marital assets. Still, the burden of proof lies with the person claiming the property is separate. Working with a lawyer who understands the nuances of post-retirement divorce can help protect your share of the marital estate.

Contact a Will County, IL Divorce Lawyer

If you are divorcing after retirement, you need legal advice that takes your current financial reality into account. To speak with a Naperville, IL divorce attorney about dividing retirement assets fairly and strategically, call Law Office of Ronald L. Hendrix, P.C. at 630-355-7776 for a free consultation.