As an individual ages, planning for retirement becomes more of a pressing matter. In the case of many married couples, provisions have been made to assist both spouses in making ends meet during retirement. Should the marriage end, however, it is imperative for Florida spouses to make property division choices that support their retirement needs and goals. Failure to do so can leave individuals with little choice but to continue working well into their projected retirement years.
One of the most important choices that will be made in most divorce cases is whether to keep or sell the family home. In most cases, it makes more financial sense to sell the home and divide the proceeds, rather than trying to negotiate a settlement in which one spouse buys out the other’s interest in the property. Very often, a home that was purchased while one’s family was growing is poorly suited as a retirement setting. Taking on the maintenance and upkeep of a home as an individual nears retirement is often a questionable decision.
Furthermore, many spouses who are divorcing in their later years could make far better use of their home’s equity in other ways. Investing the proceeds of a home sale can help to offset any retirement losses associated with the divorce. In some cases, using a portion of the proceeds to purchase a more retirement-friendly property is a solid option. Yet another option is investing in income-producing ventures that can help fund retirement when the time comes.
Divorce is a very emotional matter, and many Florida spouses have difficulty making important financial decisions during this period of time. Ironically, this is the time when clear-headed decision making is most important. Many people turn to a financial advisor during this time to help guide their property division choices, and they are able to emerge from divorce in good shape for retirement.
Source: TIME, “Don’t Let Divorce Derail Your Retirement“, Carla Fried, March 3, 2016
