Divorce is difficult, no matter how old you are, the ages of your children or where you are in life. Many older Florida couples can testify to this as divorce becomes more common for people over the age of 50. This trend of an increase in divorce filings for older couples goes by the term gray divorce, and it can have a significant financial impact on both parties.
If you are facing the prospect of a divorce later in life or after you have been married for decades, you would be wise to act quickly to protect your best interests. With support and experienced guidance, you may be able to minimize the impact that your divorce will have on your retirement plans.
A threat to your golden years
When a younger couple divorces, there are fewer retirement-related issues to address. First of all, younger couples have had less time to save, and they will have years, if not decades, to recover from any negative impact on their long-term savings. However, your divorce does not mean that you will have to put all of your plans for retirement on hold.
While you may be able to fight for a positive outcome to your divorce, this is not to say that you definitely will not experience a significant impact on your retirement savings and plans. The following are a few things you may need to know about your divorce and your financial security in your golden years:
- If there is a division of retirement savings in an IRA, this must be specifically spelled out in the final divorce order.
- A qualified domestic relations order is necessary to divide or pay out of a non-IRA retirement savings plan or account.
- Certain decisions you may make during your divorce can have significant tax consequences in the future.
Before you sign on the bottom line, agree to a settlement or make any decision that will significantly impact your financial future, you would be wise to consider how it will affect you in the years following your divorce.
Will you still be able to retire?
If you are facing a gray divorce, the end of your marriage will come shortly before your retirement. It is possible to protect your financial interests, however, and through negotiations and other means, you may be able to still retire when you planned.
The financial aspects of a gray divorce are particularly complex, and you would be wise to make your first step a complete and thorough evaluation of your legal case.