Don’t Forget To Budget For These Post-Divorce Expenses
Even those who are financially responsible often find themselves under pressure after divorce. Budgeting for certain post-divorce expenses can, however, make a significant difference in helping couples avoid financial straits down the road, so if you and your spouse have decided to end your marriage and you have finance-related questions about how to prepare for life after divorce, you should consider contacting an experienced Fort Lauderdale divorce lawyer who can advise you.
While the last thing that you may want to do when going through a divorce is worry about a budget, couples can’t really afford to ignore certain post-divorce expenses, including housing costs. For many, housing costs are the most significant post-divorce expense that a couple will face. Even if one spouse keeps the family residence, his or her costs won’t be the same as when the family had two incomes. To prepare for this, couples should be sure to have a good handle on where they will live and how much they can afford to pay in rent or mortgage payments, renter’s insurance, utilities, and maintenance costs.
Loan Payments and Insurance Costs
Many people have to refinance some of their loans upon obtaining a divorce. This could mean increased payments or a longer-term agreement, which could be difficult for a newly divorced person to manage. Changes in insurance costs are another expense that many divorcing couples forget about. Most insurance providers, for instance, offer discounts on shared plans, so individuals will need to transition to single-payer contracts after divorce, which can be more expensive. Even changes as simple as entering into a new phone plan contract should be accounted for by couples who are thinking about ending their marriages.
Divorced spouses can also expect their financial accounts to undergo some changes, including shared investment accounts, 401(k) plans, and retirement accounts, which will undoubtedly be divided during the property division process. Losing half of one’s savings and investments can have a huge financial impact on a person whose marriage has just ended. By planning for this eventuality ahead of time and creating a budget, divorcing couples can avoid a lot of financial heartache later on.
Divorcing couples with children can expect their childcare-related expenses to change, or even increase. Setting up two households can, for instance, be expensive. Furthermore, costs that were once shared, like utilities, will now need to be divided, as will health insurance and medical care expenses. Creating a budget when going into divorce negotiations, however, can help parents plan for these costs and come up with a divorce agreement that will set them up for success.
Call Today for Legal Advice
Florida divorce lawyer Sandra Bonfiglio, P.A. is well-versed in the financial issues that recently divorced couples often face. Fortunately, there are steps that can be taken to prepare for the financial upheaval that often follows the end of a marriage. To learn more, contact us online or call our office at 954-945-7591 today.