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Older adults and financial concerns of divorce

On Behalf of | Jun 10, 2020 | Blog, Divorce |

Florida couples who are going through a divorce may face additional challenges if they are near retirement or already retired. Younger individuals may have more working years to recover financially from a divorce that are not available to older people.

As a result, older adults must plan carefully so that their financial needs are taken care of after the divorce. This involves both understanding what their assets and liabilities are going into the divorce and having a sense of what their lifestyle will be like after the divorce. Some people find a new purpose when they divorce at an older age, starting a foundation, working in the community or traveling. Some people may want to be sure they can help their children or grandchildren pay for their education. Others may need to make sure they have an emergency savings fund they can draw on if necessary.

Usually, inheritances and gifts are considered individual property, but other assets, such as retirement accounts, may need to be split. There are different rules for dividing retirement accounts in a divorce based on what kind of account it is. People may also need to have property such as antiques and art appraised. When the divorce is final, a few tasks may remain, including updating the estate plan and finding new insurance.

In a high net worth divorce, this process may be particularly complex. A couple may have had decades to accumulate assets that could include out-of-state real estate, complicated investments and business interests. If couples want to sell homes or a business, they might need to have a plan in place if the asset does not sell immediately. For example, they may need to decide who will pay for expenses associated with the home or who will primarily run the business until the sale is final.

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