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Don???t let property division harm your retirement prospects

Florida couples who are nearing retirement and are considering divorce have a different set of demands than those who are in their 30s and 40s. As retirement techniques, financial choices must be made with a cautious eye towards the result, and significant losses must be prevented. Older spouses just have less time in the workforce to make up for large monetary losses, and ought to make every effort to secure their ability to retire conveniently, specifically when separation and home division are aspects.

One matter that can affect one’s retirement potential customers involves preserving the household house. Oftentimes, the financial risks and liabilities that include home ownership are not conducive to fulfilling retirement objectives. While each situation is special, in basic it is commonly a much better choice to offer the home and divide the proceeds, then move forward with a housing option that suits one’s retirement needs.

Another typical mistake that divorcing spouses frequently make is falling short to fully understand the tax complexities of dividing retirement cost savings. For example, the tax favorite connected with withdrawing from a 401(k) or IRA is far different from that of getting rid of cost savings from a Roth Individual Retirement Account. These distinctions must factor into the home department settlement approach.

When considering a divorce, Florida spouses over the age of 50 ought to make every effort to straighten their divorce objectives with their retirement goals. Making wise decisions during the property division phase of a divorce can have a large amount of influence over one’s ability to retire comfortably. This is the time to construct a strong financial foundation that can support one’s demands in retirement and beyond.

Source: Huffington Post, 4 Separation Mistakes That Can Hinder Retirement, Marilyn Timbers, Aug. 27, 2013