Can I Keep My Retirement Account if I Get Divorced? 

 Posted on September 23, 2026 in Property Division

Many people put off initiating divorce because they worry about the impact divorce and living alone afterward could have on their finances. This makes sense – after all, life is rarely less expensive when you are managing a home on a single income. But staying in an unhappy or abusive marriage can be incredibly difficult, even when money is a major concern.

If you are considering divorce and are wondering how the asset division process could impact your finances, especially your hard-earned retirement, contact a Wheaton, Illinois divorce attorney with Goostree Law Group today. Our lawyers have decades of experience handling property division, so you can rely on our guidance to get you through your case.

What Happens to Retirement Accounts in a 2026 Divorce? 

The short answer is yes: You might be able to keep all or most of your retirement account, but its marital value must still be considered during property division.  Retirement accounts are treated like any other part of the marital estate in a divorce. Illinois law requires marital assets to be divided fairly, though this does not always mean equally. This is true for retirement accounts as well. Money added to an account before marriage is generally separate property. You will need records showing how much of the account came from before the marriage.

Money earned and added to a retirement account during the marriage is generally marital property unless a valid prenuptial or postnuptial agreement says otherwise. This does not always mean the account itself must be split. Spouses can agree that one spouse will keep more retirement savings while the other receives home equity, savings, or other property.

If the spouses cannot reach an agreement on their own, even with the help of court-ordered mediation, then a judge will divide the marital assets. The judge can consider the length of the marriage, each spouse’s financial situation and earning ability, and each spouse’s contributions to the family, including work as a homemaker or stay-at-home parent. Our family law attorneys can explore your options to divide retirement accounts cleanly.

What Is a QDRO, and When Is It Needed in a Divorce?

A Qualified Domestic Relations Order, or QDRO, is a separate court order that tells a retirement plan to pay part of one spouse's benefits to the other spouse. A divorce judgment by itself does not move the money. The plan administrator needs the QDRO before any funds can be transferred or divided.

A QDRO is used for retirement plans offered through private employers. Common examples include 401(k) plans, 403(b) plans, profit-sharing plans, and traditional pensions. The order must name the employee, name the spouse receiving the funds, and state the amount, percentage, or method used to calculate the share. It must also follow the plan's own rules. An administrator will reject an order that does not match those rules.

Not every account needs a QDRO. An individual retirement account, or IRA, can usually be split using the divorce judgment and paperwork filed with the financial institution. Proper timing is another important consideration. The order should be drafted while the divorce is pending and entered at or near the time of the judgment. A payment made to a spouse or former spouse under a valid QDRO is generally not subject to the 10 percent early-withdrawal tax, although regular income taxes can still apply. The receiving spouse can often avoid immediate taxes by rolling eligible funds into another retirement account.

What Is a QILDRO?

A Qualified Illinois Domestic Relations Order, or QILDRO, is the order used to divide benefits from an Illinois public pension system. Public employees are not covered by the federal law that created QDROs. Teachers, state workers, university employees, municipal employees, police officers, firefighters, and judges usually fall into this group.

A QILDRO works differently than a QDRO. A QILDRO can divide monthly retirement benefits, certain refunds, and a lump-sum death benefit. When monthly retirement benefits are divided, the former spouse generally begins receiving payments only after the member starts receiving them.

Illinois requires specific forms and wording, and errors can lead to rejection. A second order, called a QILDRO Calculation Court Order, might also be needed to turn a percentage into a dollar amount. If the employee joined the pension system before July 1, 1999, the employee’s written consent is generally required.

Does Fault for the Divorce Impact the Division of Retirement Accounts in Illinois?

Fault for the end of a marriage does not change how retirement accounts are divided in Illinois. The state removed fault grounds from its divorce law in 2016. Irreconcilable differences is now the only ground for divorce. A spouse cannot file on grounds of adultery, cruelty, or abandonment.

Illinois law also directs the court to divide marital property without regard to marital misconduct (750 ILCS 5/503). An affair does not entitle the other spouse to a larger share of a 401(k). Poor treatment during the marriage does not shrink a spouse's share of a pension.

Financial misconduct is treated differently. Dissipation happens when one spouse spends marital money for a purpose unrelated to the marriage after the marriage has broken down. Possible examples include gambling losses, gifts to a romantic partner, and large unexplained withdrawals. A court can account for dissipation when dividing the remaining assets, including retirement funds. Strict notice deadlines apply to dissipation claims, so it is important to raise the issue early.

Contact Our Wheaton, IL Asset Division Lawyers Today

Retirement accounts can make up most of your net worth. If you are nearing retirement age and are worried about how divorce could impact your ability to support yourself later in life, schedule a free, confidential consultation with a DuPage County, IL divorce attorney with Goostree Law Group. We will fight for your rights throughout your divorce as we work toward the best possible outcome. Call our offices at 630-584-4800 to learn more about how we can help with your case.