When a Florida couple decides to end their marriage, regardless of age, there are a significant amount of issues to resolve. If a couple is over the age of 50 when the breakup occurs, questions may arise about how retirement funds will be handled. Advisors have offered several tips on how to protect one’s finances both when going through a divorce and in the following years.
Tax laws enable anyone over the age of 50 to contribute more funds to an IRA or retirement plan. It would be helpful to save as much as annual limits allow if one is able to do so. In addition, some workers may choose to continue with their jobs a few years and delay retirement. Any extra funds that can be added to a retirement account will help stretch the dollars available for the future. After retirement, it may be prudent to get a part-time job to generate more income; however, make sure that taxes or any government benefits are not adversely affected with a new job.
A person may be eligible for Social Security benefits based on a spouse’s work record, even if the couple is divorced. To claim the benefits, someone must be single, at least age 62 and the marriage had to have lasted at least 10 years. Experts suggest that if a person receives spousal support, the funds should be saved for retirement. Also, financial experts recommend investing the retirement funds rather than utilizing them for any current expenses.
Finances are just one of the many issues to address when a Florida couple decides to get a divorce. To ensure that a person’s needs are addressed, both now and for the future, it would be beneficial to seek the advice of a Florida family law attorney. A knowledgeable lawyer will work alongside clients to achieve the most favorable outcome possible in the divorce proceedings.
Source: westborough.wickedlocal.com, “7 ways to save for retirement if you divorce later in life“, Alan F. Auteri, March 13, 2018