I'm closing my 401k due to a divorce settlement. Will I still have to pay penalties in this situation?

No - distributions from a 401(k) are exempt from the penalty if they are made to an alternate payee in response to a Qualified Domestic Relations Order (QRDO). Be careful to submit the correct paperwork - for example, you will have to submit the QRDO from the court to the 401(k) plan administrator. Here's a web site with some advice on how to do this properly:

401(k) And Divorce (http://www.401k.org/401kdivorce.html)

I am retiring and need to cash out my pension I have with the company. I owe my x-wife for back alimony, will my pension be taken from me to pay arrearage?