Don’t Forget To Budget For These Common Post-Divorce Expenses

Many couples look no further than just getting through their divorce. This kind of outlook, however, can leave people struggling financially after divorce, unprepared to handle surprising post-divorce expenses. To help you avoid this, we’ve included a brief rundown on the types of expenses you should consider budgeting for both during and after divorce.

Post-Divorce Housing

For many recently divorced individuals, housing proves to be the most significant post-divorce expense. To avoid getting blindsided by housing costs after divorce, individuals who have decided to move on after divorce should:

• Explore their options by figuring out how much rent or mortgage payments will be in desirable areas;
• Join housing communities online where they may be able to find housing for a better price;
• Determine whether they will need to pay capital gains tax on their old house; and
• Start calculating their expenses, remembering to include things like security deposits, delivery costs for furnishings, and more.

Those who decide to stay in the family home, on the other hand, will need to:

• Come up with a plan for how they will cover their rent or mortgage;
• Consider how the divorce settlement will affect their housing situation (i.e. will their former spouse be paying alimony or child support); and
• Account for what their former spouse is taking from the home and how much it will cost to replace it.

For help coming up with a budget for your own post-divorce housing situation, reach out to our legal team today.

Post-Divorce Contracts

Many divorcing couples underestimate how a divorce will impact the contracts in which they are already engaged. If, for example, two spouses bought a car together, but only placed the name of one of the parties on the title, the person who is not listed may end up having to refinance his or her car loan after the divorce. This could result in increased payments and a longer-term agreement. Additionally, couples who shared loans will likely both be responsible for paying those debts off after divorce. Insurance changes are another unexpected cost for many couples, who will need to transition to single payor contracts (which are often more expensive) after divorce.

Post-Divorce Accounts

Financial accounts, including shared investment accounts, like 401(k)s and retirement plans will usually be divided during the divorce process. This often means that divorcing parties will lose half of their investments or retirement savings, which can have a significant financial impact. Fortunately, there are steps that couples can take to offset those costs, so that they aren’t blindsided after divorce.

Reach Out to Our Dedicated Fort Lauderdale Divorce Team

Having the right divorce attorney on your side can make all the difference in the ease with which you transition to post-divorce life. To learn more about how a dedicated Fort Lauderdale divorce attorney can help you navigate the divorce process, contact Sandra Bonfiglio, P.A. You can schedule a free initial consultation by calling  954-945-7591 today.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html

money.usnews.com/money/personal-finance/family-finance/articles/cost-breakdown-of-a-divorce