Florida couples between the ages of 55 and 64 often have a greater number of financial and retirement issues to consider when divorcing. As noted by the AARP, divorced women over 50 experienced an average reduction in their standard of living by about 45%. Divorced men, however, find that their standard of living drops by about 21%.
To maintain a particular lifestyle after a divorce, some couples negotiate spousal support payments. They may also discuss one spouse taking ownership of a greater portion of the couple’s dividable assets.
Marital assets divide fairly in a Florida divorce
As noted by Kiplinger’s Personal Finance, assets acquired in marriage divide between both spouses. Because Florida follows an equitable distribution method, marital assets divide fairly, which could provide an individual with more than half.
The value of income earned, bonuses, and retirement accounts is also divided fairly between a couple. Even if a spouse did not contribute financially, he or she may negotiate to receive a fair share of a couple’s combined marital estate.
The primary residence and retirement plan may require careful consideration
Older individuals leaving a long-term marriage may require financial support to assist with housing. A spouse may take ownership of a shared home but may need to show an ability to afford its mortgage payments.
If a soon-to-be ex-spouse plans to retire, he or she may not have sufficient income to provide support to meet retirement expenses. Couples may consider selling their home and dividing its proceeds fairly.
Marital assets may offer a means for older Sunshine State residents to prepare for retirement. Dividing eligible 401(k) accounts and downsizing from a current residence could offer some cash. Viewing divorce as part of a plan for the future could provide ex-spouses with a workable arrangement to move forward.