What Retirees Should Know Before Filing for Divorce

 Posted on December 25, 2025 in Retirement

Divorce later in life, often called gray divorce, raises different concerns than divorce earlier in adulthood. Retirees should understand how retirement income, assets, and future expenses may be handled under Illinois law before the divorce is underway. Planning can help avoid surprises and protect long-term security. Our DuPage County, IL gray divorce lawyer will walk you through the divorce and the unique considerations that come with separating later in life.

Why Is Divorce Different for Retirees?

Retirees often live on fixed incomes. This may include pensions, Social Security, retirement accounts, or investment income. Unlike younger spouses, there may be limited ability to earn more money in the future.

Health care costs also become more important later in life. Divorce can change how these costs are paid and who is responsible for them. Because of this, courts and negotiations often focus on fairness and stability rather than future earning potential.

How Does Illinois Law Divide Property in a Gray Divorce?

Illinois follows equitable distribution law for all divorces, regardless of age. This means marital property is divided fairly, and that does not always result in a 50/50 split.

Under 750 ILCS 5/503, marital property usually includes assets gained during the marriage. This often includes retirement accounts, pensions earned during the marriage, investment accounts, and real estate. Separate property, such as assets owned before marriage or received as a gift or inheritance, may not be divided. However, if assets become comingled, meaning they are combined, it can make this harder to determine.

How Are Retirement Accounts Handled in an Illinois Divorce?

Retirement accounts are often one of the largest assets in a gray divorce. These may include 401(k) plans, IRAs, pensions, and similar accounts. Usually, only the portion earned during the marriage is divided. Courts also typically use special court orders to divide these accounts without early withdrawal penalties. You need to understand how each account works before agreeing to any division, and an experienced attorney can keep you well-informed.

What Happens to Pensions and Social Security Benefits in an Illinois Gray Divorce?

Pensions earned during the marriage are often divided between spouses. This may be done through monthly payments or by trading other assets.

Social Security is different from other retirement benefits. Illinois courts usually cannot divide Social Security benefits directly under federal law. However, these benefits still matter because they affect each spouse’s monthly income after divorce. Courts and negotiators may consider Social Security when reviewing the overall financial picture, even though the benefits themselves are not divided.

How Does Spousal Maintenance Work for Retirees?

Spousal support in Illinois is called maintenance. Maintenance may still apply in a gray divorce, but it is handled carefully. Under 750 ILCS 5/504, courts look at age, health, income, and retirement status. If both spouses are retired, maintenance may be limited or structured differently than in other divorces. The goal is to help both spouses meet reasonable needs.

Why Do Health Care and Insurance Need Careful Review?

Health insurance is a major concern for retirees. Divorce may affect coverage, especially if one spouse relied on the other’s plan. Medicare, supplemental insurance, and out-of-pocket medical costs should be reviewed closely. These expenses can affect monthly budgets and spousal support calculations.

How Can Divorce Later in Life Affect Estate Planning?

Divorce often requires updates to estate plans. This may include wills, trusts, beneficiary designations, and powers of attorney. Illinois law may remove a former spouse from certain documents, but relying on automatic rules can be risky. Making updates helps ensure assets go where you intend.

Schedule a Free Consultation With Our Naperville, IL Gray Divorce Attorney

At Divorce Over 50 - Goostree Law Group, we help retirees navigate gray divorce, seeking a fair settlement that allows you to move on comfortably. If you are considering divorce or have questions about retirement assets, call 630-634-5050 to schedule a free consultation with our DuPage County, IL gray divorce lawyer.