Going through a divorce in Florida is difficult for people at any age. However, as adults get older, mistakes they make during the divorce process can turn into long-term financial hardships that negatively impact retirement plans.
Top divorce mistakes for older adults to avoid
These are some common divorce mistakes that may be costly:
- Forgetting about potential health insurance changes
- Not considering long-term expenses of keeping a home
- Failing to address tax consequences
- Not understanding how much each person will pay for the divorce
- Concealing assets from a spouse during the divorce proceedings
- Using a share of an ex’s retirement account to fund a new IRA
- Not creating a detailed asset inventory
- Failing to work with a good legal team
- Underestimating all current and long-term expenses
- Not realizing joint debt liabilities
- Financially supporting adult children or other adults and prioritizing their needs
- Overlooking a future pension’s value
Protecting your future after a divorce
Legal representatives often help people protect their financial interests and address issues that may otherwise leave them struggling financially. For example, they may let people know if they will lose health insurance by getting divorced and how that may impact a settlement. Also, a legal team can address IRAs, asset division, debts and other important issues.
In addition to money problems, the repercussions of some financial mistakes people make when they mishandle a divorce can lead to legal trouble. It is important to approach the process carefully and to be thorough with every step.