There are many Florida couples who divorce daily and are able to be financially stable not long after. For many older couples, though, it may be harder. We have previously discussed complex property division and alimony, but have yet to discuss financial protection. When a couple decides to divorce after 50, the result can be detrimental to one’s financial stability. Of course, this fact likely won’t make someone want to stay in a marriage they are unhappy in, and there are strategies one can use to be protected financially in the event of a divorce.
About 31 percent of couples who decide to divorce after 50 claim they have had difficulties surrounding their financial security. Many of these same people have had to dig into their retirement funds to compensate for the lost income from the other spouse. Money has to be saved somewhere, but it can be done and seem rather easy when the divorce process is completed.
Many people who divorce after 50 already have their own home. An individual may consider having a reverse mortgage in order to stay in the home with little financial disrupt. The reverse mortgage can lead to a fixed mortgage for the rest of one’s life. Some are considering purchasing fixed annuities in order to conserve finances. Suggestions have been made to purchase a minimum of $50,000 in annuities.
Many Florida couples looking into a divorce may put off the plan or reconsider it altogether, but they likely shouldn’t. Financial uncertainty should not keep someone staying in an unhappy marriage. Following a few easy steps in order to conserve money can severely help minimize or diminish the financial backlash of a divorce altogether. It may be beneficial to research different laws surrounding the asset an individual owns in the event of a divorce, in order to achieve fairness to both spouses.
Source: Main Street, Divorce After 50, Juliette Fairley, Dec. 9, 2013