QDROs for Public Employees in Illinois Divorces

 Posted on August 25, 2025 in Property Division

Public employees in Illinois are often covered by government pension plans, which can present a unique challenge when it comes to dividing assets during a divorce. One of the most important tools for dividing retirement accounts in Illinois divorces is the Qualified Domestic Relations Order (QDRO). However, when dealing with pensions and retirement accounts specific to public employees, the process is a bit different than that of a QDRO for a non-state employee.

In this blog, we will explore how QDROs apply to public employees in Illinois divorces, including how to ensure that you are properly protected when setting up these payment plans. To learn more about your specific case, call our Wheaton, IL divorce attorneys.

What Is a QILDRO?

A Qualified Domestic Relations Order (QDRO) is a legal document that allows retirement assets to be divided in a divorce. It applies to certain types of retirement accounts, including 401(k)s, pensions, and other defined contribution or benefit plans. A QDRO allows a former spouse to receive a portion of the pension or retirement benefits without causing tax penalties or other complications for the original account holder.

In Illinois, there are special QDROs called Qualified Illinois Domestic Relations Orders, or QILDROs. Just as with non-state pension divisions, the QILDRO process ensures that both spouses are fairly compensated for their share of retirement assets acquired during the marriage.

Teachers, police officers, firefighters, and government employees who are getting divorced after seeing their pensions vest should be aware of the basics of QILDROs so they know what to anticipate from the division process. A well-written QILDRO is essential to avoid any tax issues or delays in accessing funds.

Public Employee Pension Plans in Illinois

Public employee pension plans in Illinois are managed by various state and local agencies, depending on the type of employment. These pensions are governed by specific rules and regulations that are not the same as those of private-sector retirement plans.

Some common pension plans for public employees in Illinois include:

• Illinois Municipal Retirement Fund (IMRF): This covers most municipal employees, including those working for cities, counties, and other local government entities.

• State Employees’ Retirement System (SERS): This covers state government employees, such as those working for the State of Illinois.

• Teachers’ Retirement System (TRS): This provides pension benefits to public school teachers across Illinois.

• Police Officers’ and Firefighters’ Pension Plans: These plans provide benefits to law enforcement officers and firefighters in Illinois municipalities.

Each of these pension plans has its own set of rules for dividing benefits in a divorce.

How Are Public Employee Pensions Divided in Illinois Divorces?

The division of public pensions in Illinois requires specific steps to ensure that both spouses are entitled to their fair share of the benefits. The process generally involves the following:

Valuation of the Pension

The first step in dividing a public pension is determining its value. This often requires a pension expert or actuary to perform a pension valuation to determine how much the pension is worth at the time of divorce. This valuation can be particularly complex for pensions with variable benefits, such as those based on years of service or final salary.

Court Order for Division

Once the pension value has been determined, a court order must be issued to divide the pension benefits. This is where the QILDRO comes in. The order must meet the specific requirements of the pension plan and may need to address how the benefits will be paid over time.

Receiving the Benefits

After the court order has been submitted and accepted by the pension administrator, the former spouse will begin receiving their portion of the benefits. In some cases, the benefits are paid directly by the pension plan administrator. In other cases, the former spouse may need to apply for the benefits at a later date, depending on the terms of the pension plan.

What Benefits Are Divided in a QILDRO? 

There are several important considerations when dividing public pensions for public employees in Illinois divorces:

• Vested vs. Non-Vested Pensions: In Illinois, only vested pension benefits can be divided in a divorce. If one spouse is not yet vested in their pension plan (i.e., they have not yet met the necessary years of service), then their pension benefits cannot be divided. However, if the pension is vested, the benefits earned during the marriage can be divided equitably.

• Survivor Benefits: Public pension plans often include survivor benefits, which provide continued payments to a spouse after the pension holder’s death. It is important to determine whether these survivor benefits will be included in the division of the pension. In some cases, the court may order that the survivor benefits be paid to the non-employee spouse to make sure that they are financially supported in the event of the pension holder’s early death.

• Tax Implications: Unlike private pension plans, public pensions may have different tax implications. While the non-employee spouse may receive a portion of the pension, the tax treatment of these benefits will vary depending on the type of pension plan and when the benefits are distributed. Working with a financial advisor or tax professional is very important; they can help you understand the full tax implications of dividing a public employee pension, including what to do with the funds once they are available to you.

Call a DuPage County, IL Divorce Lawyer Now

The division of public employee pensions in Illinois can be complex and requires specialized knowledge of both family law and pension law. At The Stogsdill Law Firm, P.C., our attorneys know how to manage divorces involving public employees and can help ensure that the division of pension benefits is handled properly and that both parties receive their fair share.

If you are facing a divorce and have concerns about the division of public employee pension benefits, work with an experienced Wheaton, IL family law attorney at The Stogsdill Law Firm, P.C.. With over 40 years of combined legal experience in high-quality family law counsel in northern Illinois, our firm is dedicated to providing the support and guidance you need during this difficult process.

Contact us today for a free consultation. We will help you understand the complexities of dividing public pensions and ensure that your financial future is protected as you navigate the divorce process. 630-462-9500.