Managing Your Divorce Close to Retirement

 Posted on May 31, 2025 in Asset Division

Divorcing near retirement raises difficult questions about financial security, housing, and whether years of planning will need to be rethought. In Illinois, many people facing divorce in their late 50s or 60s are trying to balance emotional stress with concerns about pensions, healthcare, and living arrangements. Unlike younger couples, there may be little time to rebuild financially after the split, making every legal and financial decision especially consequential.

As of May 2025, Illinois divorce law continues to treat all divorces the same under the Illinois Marriage and Dissolution of Marriage Act, regardless of the age of the divorcees, but practical outcomes can differ significantly when retirement is near or already underway. Our Kane County, IL divorce attorneys can help you understand how divorcing now may affect your retirement. You can also learn more about how certain retirement accounts may be split up as part of property division in a divorce. 

What Financial Challenges Do Late-in-Life Divorces Create?

Illinois is an equitable distribution state, meaning the court divides marital property fairly but not necessarily equally. A major challenge in a later-in-life divorce is that many assets are no longer liquid, and dividing them can trigger tax consequences or disrupt long-term plans.

Key concerns include:

• Retirement accounts such as 401(k)s, IRAs, and pensions, which often require a Qualified Domestic Relations Order (QDRO) to divide without penalties.

• Health insurance, especially for a non-working spouse who relied on coverage through their partner’s employment.

• Real estate and downsizing, as it may be necessary to sell or refinance the marital home to provide each spouse with sufficient living space and equity.

• Income reduction, especially when one spouse has not worked in many years or has already retired.

The court will also consider each spouse’s future earning potential and overall financial needs. In many cases, spousal maintenance (alimony) becomes a major part of the negotiations and judgment.

Should You File for Divorce Before or After Retiring?

There is no perfect timing, but when divorce is likely, filing before retiring can be beneficial if it allows you to establish income-based maintenance and asset division while you are still working. However, each case is unique. If you are concerned about benefits, Social Security, or long-term care coverage, speaking with a divorce lawyer familiar with retirement-age divorces is essential.

Divorce Means Modifying Your Estate Plan, Too

Getting divorced does not automatically update your will, power of attorney, or named beneficiaries. These should be reviewed and updated after the divorce is finalized. If you plan to remarry or want to protect assets for adult children, legal planning becomes even more important.

Contact a Kane County, IL Divorce Attorney

If you are thinking about divorce near retirement age, the legal and financial stakes are high. To discuss your options and prepare for what comes next, contact a knowledgeable St. Charles, IL divorce lawyer at Weiler & Associates, Inc. by calling 630-331-9110. We can help you protect your future and pursue a fair resolution.