It is becoming increasingly common for couples to be contemplating divorce when they are reaching retirement age or are living in retirement. This is often due to the lifestyle changes that come about during retirement. Your priorities and expectations of what marriage means might change.
When you do start the process of divorce, there are some additional aspects to consider as a retired person, including your retirement plan. It is likely that you and your spouse’s finances have become very intertwined over the years, and the process of splitting them must take place.
In Florida, additional factors will be taken into account when dividing up retirement plans and additional assets. These will include the length of your marriage as well as the reason that your marriage broke up. You are likely to be entitled to at least part of your spouse’s 401(k) plan, as well as any other retirement plan that they have.
Understanding the qualified domestic relations order?
The qualified domestic relations order (QDRO) is a type of demand for money that can be made by the courts. It is a similar order to child support or alimony, but it is often arranged to help support a retired divorcing spouse. You can receive this order as a single lump sum or receive payments over time. This helps even out the playing field for both spouses and allows them to both have a good quality of life through retirement.
If you are seeking a QDRO as part of your divorce settlement, you should conduct research into how they work and understand the circumstances in which they are made.
Source: The Balance, “What’s a QDRO?,” accessed Nov. 29, 2017