Are there penalties for cashing out retirement accounts after a divorce?

You should not have to pay any penalties, if you file the paperwork correctly. See for example this Investopedia article; there are some important details to get right to avoid paying tax and the 10% penalty. You end up doing a kind of rollover transaction. If the money is all pre-tax, or all post-tax (Roth), then it's easier; if the accounts are mixed, then it's more complicated, as you need to track the basis and file more forms (with the IRS).

This is the kind of thing you should talk over with your attorney (and they should know them well), and probably consider getting a CPA to help make sure this transaction is done properly, particularly if your accounts are very large.

https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers

Section 2202 of the CARES Act changed distribution rules:

In general, section 2202 of the CARES Act provides for expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans

You are a qualified individual if –

You are diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention; Your spouse or dependent is diagnosed with SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention; You experience adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to SARS-CoV-2 or COVID-19; You experience adverse financial consequences as a result of being unable to work due to lack of child care due to SARS-CoV-2 or COVID-19; or You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.

This expires on 30-Dec-2020, though.