Divorcing During Retirement — How Does the Process Differ?

 Posted on March 21,2022 in Uncategorized

Like any divorce process, divorcing during retirement has its unique challenges and hurdles. Divorces alone can be complicated, especially if the couple has been married for an extended time. Spouses wind up sharing many financial assets throughout a marriage, including retirement pensions and other savings accounts. An individual might be entitled to their spouse's retirement plans even if there was no contribution on that individual's end. When divorcing during or after retirement, spouses must be vigilant in protecting their savings to ensure financial health for their future. 

Protecting Your Retirement Plans

Individuals typically open retirement plans such as a 401(k) or an IRA when preparing for retirement. These are considered financial assets, which could be divided equally between two spouses during a divorce. Pension benefits from a spouse's career may also be regarded as a shared marital asset and divided equally between both partners. According to Illinois law, retirement plans, including pension, are often considered shared marital property and must be divided as such. In a no-fault divorce state such as Illinois, the court emphasizes the equitable division of finances and other property. If you are considering or actively pursuing a divorce and wish to have your retirement plan and pension separated from your spouse, it is in your best interest to work alongside an experienced attorney who can help you understand ownership of retirement assets and how best to divide assets between you and your spouse. 

Will My Spouse Split my Social Security Check?

At the age of 62, Illinois residents can collect social security benefits. Depending on how long you and your spouse were married and the amount of social security your spouse collected, you may be entitled to social security benefits based on your spouse’s employment history. Typically, spouses married for ten years or longer may be entitled to the higher-earning spouse's social security. 

Other Financial Considerations

Divorcing during retirement can be more complex than a standard divorce due to the many financial considerations. Spouses must consider how the court may allocate retirement funds to ensure financial security for the future. However, this is just one consideration to keep in mind. Like all divorces, spouses have to split all shared property. This can become difficult if there is disagreement or if the spouses do not have a prenuptial or postnuptial agreement in place. Other financial considerations to keep in mind when divorcing during retirement include:

• Who will remain in the primary residence?

• If your spouse can receive Medicare benefits from your professional history 

• How to afford payments, such as spousal support, during retirement 

• How family heirlooms and other sentimental items will be divided 

• How other savings accounts will be split and allocated to each partner 

• If there are any other shared financial assets, such as family-owned businesses 

• How stocks and other financial resources will be divided

Speak with A Skilled Naperville Divorce Lawyer

At Law Office of Ronald L. Hendrix, P.C., we understand the complexity of divorce, especially during a sensitive financial time such as retirement. Our skilled DuPage County family and divorce attorneys, Ronald and Christopher Hendrix, have years of combined experience working with couples divorcing during retirement and other complex family legal situations. We offer a free consultation to help you navigate your circumstances. To schedule an appointment, please call 630-355-7776. 

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm