Divorcing at an older age
The divorce rate among those 50 and older is increasing while it is going down for all other age groups across the country. While older Florida residents may not have the fate of any children to worry about in a divorce settlement, they may be battling for their financial futures.
The cost of a divorce could spiral if the split is not an amicable one. Taxes and fees could also impact how much a person receives in a divorce settlement. One person wanted his half of an IRA valued at $1.5 million in the form of a cashier’s check. However, that person failed to realize that money inside of an IRA is taxed when it is withdrawn. In some cases, the combined tax rate could be as high as 52 percent.
Those who are under the age of 59 1/2 may also have to pay a 10 percent early withdrawal penalty. Those who take money out of a brokerage account may need to liquidate assets to do so. In such a scenario, an individual may incur long-term capital gains taxes . These taxes and other expenses could significantly reduce the value of any such asset a couple may have shared.
The end of a marriage may be an emotionally and financially difficult time in a person’s life. Therefore, it may be best to talk with an attorney in an effort to get through it as best as possible. An attorney may be able to help an individual obtain as much marital property as possible in addition to spousal support. This may allow a person to retain his or her lifestyle after a marriage ends.