If You Are Contemplating A “Gray Divorce,” Take Steps To Protect Your Retirement Plans
If You Are Contemplating A “Gray Divorce,” Take Steps To Protect Your Retirement Plans May 23, 2018 Divorce has become more and more common for individuals who are 50 or older (sometimes called a “gray divorce”). The rate of divorce amongst this age group has roughly doubled since the 1990s, and for those 65 and older, it has tripled. However, that doesn’t mean that there’s a ‘one-size-fits-all’ approach developing; because being comfortable after retirement is of paramount importance for those approaching retirement, there are some dos and don’ts when it comes to divorcing later in life, which we discuss in greater depth, below. In general, whatever funds a couple has accrued in their 401(k) plans, 403(b) or 457 accounts, individual retirement accounts, pensions, etc. will be divided, and therefore, there are some steps to take to protect yourself. IRA Transfers First and foremost, any and all IRA transfers need to be done properly, and with the assistance of an attorney who has experience in Qualified Domestic Relations Orders (QDROs), specifically. If they are not done properly, you can be subject to significant penalties and taxes. Put Significant Thought into Each Asset, Including the House Second, be careful about making sacrifices in order to keep the house. Given the ups and downs of the real estate market, in doing so, you could end up losing your only real estate via bank repossession. Staying in the family house could also rob you of the chance to boost your retirement income (i.e. saving hundreds each month on the mortgage provides you with a percentage return on your savings, which translates to significant funds for retirement). Florida follows a policy of equitable distribution of assets, which means that there will be an equitable distribution based on earnings power, length of the marriage, and work records. If you are 10-15 years away from retirement, you will want to value assets in terms of any sustainable income that they are likely to generate, as well as any taxes involved (for example, a 401(k) is going to be taxed at higher rates–and thus worth less–than a taxable investment account). In addition, once you have reached 62 years of age and if your marriage lasted at least 10 years, you can opt for a benefit of 50 percent of what your ex is due in Social Security (if this is greater than your full benefit). Your attorney can help advise you on the financial planning side of things (and/or may have an advisor that they trust and work with regularly) when it comes to establishing values on all of the important assets, such as insurance policies, IRAs, and pensions. Florida Divorce Attorneys If you are contemplating getting a divorce in the second half of your life, speaking with an experienced attorney who has handled many divorces can help put you on the right path and provide you with peace of mind. Contact one of the experienced Florida divorce attorneys of HD Law Partners today for a free consultation to find out more. Resource: washingtonpost.com/news/get-there/wp/2018/03/26/a-gray-divorce-can-devastate-your-retirement-plans-heres-how/?utm_term=.c973d3d81c1b Tags: Florida Divorce and Family Attorneys, Florida Divorce Attorney, Florida Divorce Process Posted in Divorce | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us