Problems With Divorcing Close to Retirement

 Posted on February 28, 2026 in Divorce Over 50

Sometimes, the life you envisioned with your spouse doesn’t always go as planned. For one reason or another, you may have come to the conclusion that the marriage just isn’t sustainable, and that there are irreconcilable differences that keep it from working. Some couples have this realization just a few years before retirement, which can complicate the divorce process.

At Goostree Law Group, our Kendall County, IL gray divorce lawyers have decades of legal experience, which has given us deep insights into how to handle complicated cases. We will review your situation and advise you of how to avoid risk as you navigate the end of your marriage nearing retirement age.

Three Problems With Divorcing Close to Retirement in 2026

Divorcing close to retirement can feel overwhelming. After decades of work, planning, and saving, you may have expected stability. Instead, you are facing financial uncertainty at a time when rebuilding income is harder. When retirement is near, three problems often arise – dividing retirement assets, allocating spousal support, and addressing Social Security benefits. Each issue can affect your long-term financial security.

Dividing Retirement Assets

For many couples close to retirement, retirement accounts are the largest assets they own. These may include 401(k) plans, pensions, IRAs, and government or union retirement benefits.

In Illinois, any portion of a retirement account earned during the marriage is generally considered marital property. Even if the account is in only one spouse’s name, the marital portion can still be divided. Courts divide marital property under the Illinois Marriage and Dissolution of Marriage Act. Illinois follows an "equitable distribution" system. That does not always mean a 50/50 split.

This can be painful. One spouse may feel that he or she "earned" the account through years of work. But the law recognizes that both spouses often contribute to a marriage in different ways. One may earn income while the other may manage the household or raise children.

Understanding what portion of an account is marital versus non-marital is critical. Contributions made before the marriage may be non-marital. Growth on those contributions may also be non-marital if properly traced. Without careful documentation, however, the entire account can be treated as marital property.

Allocating Spousal Support

Spousal support, also called maintenance, becomes especially important when divorcing near retirement.

Illinois courts look at several factors when deciding maintenance. These include the length of the marriage, each spouse’s income, future earning capacity, age, and health. In long-term marriages, maintenance may last for many years. In some cases, it can be indefinite.

When retirement is near, questions become more complicated. If one spouse plans to retire soon, should maintenance continue after retirement? What if the paying spouse’s income drops? What if the receiving spouse has little or no retirement savings?

Courts do not automatically end maintenance at retirement. A spouse seeking to modify or terminate maintenance must show a substantial change in circumstances. Retirement can qualify, but it depends on whether the retirement is reasonable and made in good faith.

This creates uncertainty. A spouse may feel pressure to delay retirement in order to continue paying maintenance. Another spouse may fear losing needed income. Divorce at this stage forces both parties to reexamine their long-term plans.

Dividing Social Security Benefits

Social Security benefits are often misunderstood in divorce. Unlike pensions or 401(k) accounts, Social Security benefits are governed by federal law. Illinois courts do not divide Social Security directly as marital property. However, a divorced spouse may still qualify to receive benefits based on an ex-spouse’s work record.

If the marriage lasted at least 10 years, a divorced spouse who is unmarried may claim benefits based on the former spouse’s earnings. This does not reduce the other spouse’s benefit. Both may receive their respective amounts. Still, Social Security does not replace a full retirement plan. The benefit amount may be lower than expected. Early claims can reduce the monthly payment. Waiting can increase it.

For couples divorcing close to retirement, coordinating Social Security timing becomes critical. A rushed decision can permanently reduce lifetime benefits.

When Is a QDRO Used in an Illinois Divorce?

A Qualified Domestic Relations Order, or QDRO, is often required when dividing certain retirement plans. A QDRO is a court order that directs a retirement plan administrator to pay a portion of one spouse’s benefit to the other spouse. It is commonly used for 401(k) plans and employer-sponsored pensions.

Without a proper QDRO, a spouse may not receive his or her share of retirement benefits. Worse, a poorly drafted QDRO can cause tax problems or unexpected losses. If a spouse retires before the QDRO is entered, complications can arise. Delays can cost money.

Not all retirement accounts require a QDRO. IRAs, for example, are typically divided through a transfer incident to divorce. However, the paperwork must still be done correctly to avoid tax consequences.

Is it Better to Avoid Dividing Retirement Assets in Illinois?

Some couples try to avoid dividing retirement accounts directly. One spouse may keep the retirement assets. The other may take more equity in the home or other investments.

This approach can work in some cases. It can simplify paperwork and avoid QDRO fees. It may also allow one spouse to preserve a pension intact. However, trades must be evaluated carefully. A house is not the same as a retirement account. A home requires upkeep, taxes, and insurance. A retirement account grows tax-deferred and may provide steady income.

Liquidity also matters. You cannot easily use home equity to pay monthly expenses without selling or borrowing. Retirement accounts are designed to provide income in retirement. Close to retirement, small miscalculations can have large consequences. The value of an asset today is not the same as its future income potential. A balanced approach requires careful financial analysis.

Contact a Yorkville, IL Family Law Attorney

If you are considering divorce near retirement, speak with an attorney who understands both Illinois divorce law and the financial realities of later-life divorce. Call 630-584-4800 or contact our Kendall County, IL gray divorce lawyers to schedule a free consultation with Goostree Law Group today.