My wife is 5 4 and her recurve bow is 62 inches long.
Aside from the alignment problems (unless you are a very good machinist), if you shorten from the wedge side it will result in a broken bow and possible injury to the shooter. I assume the bow has about an 8 inch limb wedge, about half lays on the handle and half extends beyond the handle to gradually start the bending of the limb. If you cut 4" off, the entire limb wedge will then be on the handle, not allowing a gradual start to the limb bending, essentially creating a handle with no, or at best a very short fade from handle to limb. Only bad things can happen if you do that as it puts a lot of stress on the limb where the handle ends.
Also be aware that if you make a new handle, you will get about 5 pounds draw weight increase for every 2 inches you shorten the bow, Your goal of 8 inches will add about 20 lbs with the same limbs.