Dividing a Lifetime of Savings and Investments in a Grey Divorce

 Posted on June 09, 2025 in Divorce

Divorce later in life — often called a "grey divorce" — presents unique legal and financial challenges, especially when it comes to dividing retirement accounts, investment portfolios, and long-held savings. As of June 2025, Illinois divorce courts continue to apply equitable distribution principles to all marital property, regardless of the couple’s age or how long they have been married. That means every dollar saved or invested during the marriage is subject to division.

For couples divorcing later in life, the financial stakes are high. After decades of shared financial planning, the wrong decisions during divorce can disrupt retirement, trigger unexpected taxes, or unfairly shift long-term risk onto one spouse. If you are navigating a grey divorce, speak with an experienced Joliet, IL family law attorney to understand your options and how to protect your interests.

What Counts as Marital Property in a Grey Divorce?

In Illinois, marital property includes nearly all income, savings, and investments acquired during the marriage, even if the accounts are held in one spouse’s name. That includes:

• Retirement accounts like 401(k)s, IRAs, and pensions

• Brokerage accounts and investment funds

• Savings accounts and CDs

• Real estate and business interests acquired during the marriage

Only assets acquired before the marriage or received as gifts or inheritance (and kept separate) are considered non-marital. Even then, proving that an account or property remains separate can be difficult after years of financial mingling.

How Are Retirement Accounts Divided in a Grey Divorce?

Dividing retirement assets is one of the most important and technically complex parts of a grey divorce. Illinois courts can divide defined contribution plans (like 401(k)s and IRAs) and defined benefit plans (like pensions) using a Qualified Domestic Relations Order (QDRO). This legal document directs the plan administrator to divide the benefits without triggering early withdrawal penalties.

Mistakes in drafting or executing a QDRO can result in tax consequences, delays, or lost benefits. Each plan has its own rules, and each spouse’s rights depend on the length of the marriage, the plan’s terms, and whether any contributions were made before the marriage.

It is also important to account for survivor benefits, especially if one spouse depends on the other’s pension or annuity in retirement.

Are Non-Retirement Investment Accounts and Stocks Divided in Divorce?

Non-retirement investments are divided based on their current value and character. If the account grew during the marriage through reinvested dividends or shared contributions, the entire account may be treated as marital property.

Stock options, executive compensation packages, or long-term incentive plans require careful attention, especially when one spouse worked in a high-level position for many years. Our firm aggressively negotiates these divisions to ensure transparency and fairness.

Is Equal Asset Division Required in an Illinois Divorce?

Illinois law requires equitable division, which means it must be fair, but not necessarily equal. The court considers the length of the marriage as well as each spouse’s earning potential, health, age, and contributions to the marital estate. In some grey divorces, especially where one spouse gave up a career to support the family, the court may award a larger share of savings or require maintenance (alimony) payments.

Personalized Service Matters in Grey Divorces

Every grey divorce is different. One couple may be dividing multiple properties and large brokerage accounts. Another may be focused on protecting one spouse’s retirement income while ensuring the other receives a fair share of marital assets. That is why our firm provides direct, personalized representation from our two attorneys, not case managers or junior staff. We take the time to understand your goals and negotiate from a position of strength.

Contact a Joliet, IL Divorce Attorney for Divorce Later in Life

If you are facing divorce after decades of marriage, you need a legal team that understands the financial stakes and will fight to protect your future. Contact a Will County, IL divorce attorney with the Law Offices of Tedone and Morton, P.C. at 815-666-1285 to schedule your free consultation with our dedicated, experienced attorneys.