A divorce at any age can have serious financial implications for residents in Florida. But, if you are in your 50s or 60s when getting divorced, your need to pay attention to retirement assets and income can be much greater than if you got divorced in your 30s. This is simply a fact of life because you have fewer years left to recoup any losses and provide for yourself during your retirement years. How can you best protect your ability to retire well even when getting divorced at a later age?
Time indicates that one of the most important things you should pay attention to is the variety of income streams you may have at your disposal. Simply put, all potential assets or flows of income are not created equal. Some will have serious—and negative—tax ramifications for you. An example is a 401K account. Money received from this will ultimately be taxed at your normal tax rate. An investment account funded with pre-tax dollars, however, offers you the ability for income sans later taxation.
You should also learn if you may qualify for Social Security benefits based upon your spouse’s contributions. There are specific criteria which must be met, including age and duration of your marriage, but this can provide a beneficial source of income for you. When it comes time to consider your housing situation, emotions should be put on hold. Attachments to homes can come at a steep price. You may be better off selling a home and reducing your housing costs.
This information is not intended to provide legal advice but general information for Florida residents about how to protect your future income stream while getting divorced when retirement looms.