In Florida, more couples than ever are getting a divorce after the age of 50 in a phenomenon known as “gray divorce.” Given how close the spouses are to retirement, this type of divorce requires a strong financial plan in order to keep their financial lives on track. Since there is less time before retirement, there is not much margin for error.
Before a person begins the divorce process, they should have an exact understanding of all the assets in the marital estate. This will enable them to make decisions about settlement. They should also have a sense of what assets their spouse might declare in order to be on guard about hiding assets.
An individual should consider both their short-term and long-term needs after the divorce. They should pay close attention to their living situation and how much it will cost. Then, they should consider the impact of the divorce on both their retirement plan as well as the money that they may want to leave to children.
Even after the divorce is final, there are still steps to take. Each person must update all of their financial accounts, including the beneficiaries. They may also need to change insurance and make the proper changes to the estate plan that are required. Finally, they should recalibrate their financial plan to account for their new reality.
Hiring a divorce attorney early in the process may help someone prepare financially for the divorce. The attorney may help their client negotiate the divorce agreement. Before that, the attorney may educate their client on what is involved in the divorce so that they better know the parameters of the settlement. If the divorce is not amicable, it is even more critical to have an attorney to obtain the most favorable court order possible under the circumstances.