Blog

What to Look Out for If You are Older and in a Divorce in Orlando, Florida

Someone who is older and divorces may face issues that a younger person divorcing does not have to face. What are the significances of divorcing later in life?

Depleted Accounts

First, the retirement accounts you have contributed to for years could be significantly depleted during the divorce due to attorney’s fees, therapist fees, and having to pay your bills if you do not receive temporary alimony or the alimony you receive does not cover your bills in highly contentious divorce litigation. Unlike when you are younger, you may not have the time to recoup your losses and rebuild your retirement accounts. Further, you may have already peaked at your earning capacity and may no longer earn the amount of money you previously earned in your peak years.  

Losing Benefits

When parties divorce, each of the spouses has less money than when they lived together as a married couple. Further, if you have not worked for years, you may not have the technology skills required by the current job market. If you did not work during the marriage, then you may not qualify for your own social security. You should check with the Social Security Administration to see if you would receive more money taking under your Social Security or your spouse’s social security. 

You need to check with the Social Security Administration to see if you can take social security under your spouse and what that entails. You should also check when you will qualify for that. This is very important because if your retirement account is depleted, you can no longer count on using that in retirement to help you pay your living expenses. 

Assets and Debts

You need to make sure that if the other spouse controls the assets that you learn of all the assets and debts of you and your spouse, as well as which assets or debts are joint debt. Make sure you know all debts that are listed under your name or jointly. Also, meet with a financial planner and the bank to see if you can afford to keep the house and pay the mortgage. Further, can you afford to refinance the mortgage in your name if ordered to do that? Or is it better to sell the house and distribute the profits? 

Taxes and Expenses

Make sure you talk to a CPA or tax attorney regarding the tax ramifications of your divorce. Make sure you have priced health insurance if you are not eligible for Medicare. If you are eligible for Medicare, what will be the cost of that? Health insurance for an older person can be cost prohibitive. If there are any retirement assets left to split, make sure you do it by QDRO to avoid the taxes and penalties. You can discuss this with a CPA, financial planner or tax attorney. 

Make sure you truly know your expenses. If you underestimate your expenses, you could be left with not enough money each month to pay your bills. If you currently supplement your adult children’s income, then you may no longer be able to do that. These are a few things to remember when you are in a gray divorce. 

If you have more questions regarding a Marital and Family Law matter, you may call Ann Marie Giordano Gilden at Ann Marie Giordano Gilden, P.A. at 407-732-7620 and set an initial consultation. 

This article is for informational purposes only and does not form an attorney client privilege.