Over forty years, most Florida residents stockpile resources for the time when they will no longer be able to work. Once they reach retirement age, financial health seems to be set in stone for the rest of their life.
Unfortunately, no one knows exactly how much money they will need for a secure retirement. Along the way, saving enough funds can have unforeseen complications including major health issues, income shifts and divorce. Divorce can particularly shake-up those preparing for retirement.
According to CNN, the costs of retirement are significant. Most people will need as much as 80% of their pre-retirement income to continue their lifestyle. Some costs are predictable, such as house payments, but others may be a surprise. CNN also notes that as income plummets, expenses don’t necessarily decrease at a matching rate. This is when savings become imperative.
Couples who divorce around age 50 or above usually have many crucial financial concerns about retirement. Divorcing a spouse means splitting one household into two – and the outcome isn’t always equal. In some cases, the result could be a hefty dent in IRAs, 401(k)s and other accounts. If the couple paid off a house together, one might continue living in it during retirement while the other must pay for a different housing option. As in any divorce, each former spouse will also take on the burden of providing everything within their own household.
These issues create complex decisions during divorce negotiations. Couples should not agree to a settlement until all assets, such as the house, receive a professional appraisal. Spousal support in the form of alimony payments might also find a place in these discussions, especially for longer marriages. With the rest of your life in the balance, be sure to review the agreement with an attorney carefully.