It is no secret that divorce comes with a high price tag. From court and legal fees to support payments, costs show up in all parts of the process.
Fortunately, you can mitigate some of these bills. All it takes is awareness, preparation and smart choices.
Common unexpected costs of divorce
Naturally, the exact expenses you have will depend on your circumstances, such as the assets you have and how many children are involved. In general, common hidden costs are as follows:
- Health insurance: If you were on your spouse's health insurance plan, you will now have to get one on your own.
- House: Selling a house comes with many expenses, from commissions to pre-sale repairs. Likewise, keeping the property requires paying for re-titling fees. If you are the one moving out, you will have to deal with moving costs and a down payment or security deposit on a new place.
- Valuations: A professional valuation will be necessary if you have numerous or complex assets, such as a business. You may end up utilizing other professional services, too, such as accountants.
- Taxes: Divorce affects taxes in many ways, including support payments and retirement accounts.
- Post-divorce counseling: Adjusting to life after divorce is challenging. You and/or your children may need the support of a counselor to get through it.
Also, keep in mind that not only do the courts divide marital assets, but also marital debts.
How to prepare financially
The good news is that you can take measures to lower these costs. The first is to proceed with your divorce based on best interests for the family instead of on negative emotions. The more hatred and vengeance there are, the longer and more expensive your divorce will likely be.
Try a more cooperative approach, such as mediation or arbitration, for a shorter, cheaper and more civil divorce. Choose your battles, and make sure you understand the financial implications of your options before you choose one, especially when it comes to property division.