Gray divorce poses numerous difficult issues to consider

On Behalf of | Apr 1, 2020 | Blog, Divorce |

A divorce in Florida can be challenging no matter what stage in life the parties have reached. However, those who are going through a divorce after the age of 50 should be aware of some extra considerations that may influence their finances as well as the prospects of their beneficiaries.

One of the first subjects to think about is how the possible alimony arrangement may impact the tax situation. This can have further ramifications for issues of property division. Because of the 2017 tax bill, the spouse who is obligated to pay alimony no longer can deduct it from their taxes, increasing the financial effect that it will have on them. This may cause them to seek a greater share of the marital estate.

In addition, spouses in the middle of a divorce should be cognizant about what the split will do to their estate plans. Of course, divorce will require a new estate plan for both spouses along with changing the beneficiaries on numerous accounts. Spouses must know that they will not be allowed to change the beneficiary on their retirement account until the divorce is finalized. Once the divorce is finalized, an ex-spouse should take the appropriate actions to protect their assets and move forward with their new estate plan as necessary.

A divorce attorney may help their client work through these issues. It is vital to have a firm understanding because this will impact decisions that are made leading up to the settlement. The attorney could point out various changes in the laws that the client may not have thought of in the heat of a divorce. Legal advice could put the client in a better position to begin their post-divorce financial life.

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