Smart financial moves to make in a divorce
Florida residents or others who get divorced in their 40s or 50s may face unique financial challenges. For instance, living on one income late in life may require an individual to rethink their retirement plan. It may also be necessary for those who may not have experience in the workforce or managing their own money to forge their own financial future.
Those who did not work for at least 10 years generally don’t qualify for social security benefits on their own. However, it may be possible to qualify based on a former spouse’s work record if the marriage lasted for 10 years or longer. It may also be possible to get a portion of a 401k through what is known as a qualified domestic relations order (QDRO). That money may be used to help a person save for their own retirement or can be cashed out to help make ends meet now.
Anyone going through a divorce may want to take some time to figure out the expenses that they need to cover today. This may mean determining whether to keep a marital home or rent another home or apartment. When making this decision, it may be a good idea to consider maintenance costs as well as possible tax implications of keeping a home versus selling it.
There may be many ways in which a person may secure his or her financial future after a divorce. In some cases, a prenuptial agreement may determine if and how much spousal support a person may receive. It may also be possible to ask for a portion of retirement assets or funds inside of a bank or brokerage account as part of a divorce settlement. Parents may also ask for child support to help ease their financial burden.