Sometimes marriages get rocky for a variety of reasons. Couples have to decide whether it’s worth it to keep trying or to just end things and file for divorce. One of the factors they may consider is the cost. If you’re already struggling financially, divorce isn’t going to make things better. A divorce can cost $20,000 or more, so it’s not going to come cheap. That’s just for legal expenses. On top of that, there is alimony to consider, as well as child support )if you have children).
But that’s not all. There are many hidden costs of divorce that not many couples know about. They may not fully understand the financial implications of dividing their assets. Certain financial arrangements and property transfers can have long-term consequences. This lack of knowledge can lead to unexpected expenses in the future, so you could be dealing with additional costs long after the divorce has been finalized.
This means you need to do your research and make sure you understand the true cost of divorce. If you decide to end your marriage, here are some hidden expenses you should look for.
Splitting the Marital Home
You can’t win if there’s a marital home involved. If one person wants to keep it, they will need to refinance the mortgage, which means higher interest rates in today’s economy. This means the monthly mortgage payment will increase, so you’ll need to budget for that. If you decide to sell the home, you can split the proceeds of the sale. However, there are costs in selling the home, such as renovations, inspections, and paying the real estate agent their commission.
Someone is going to have to move out of the marital home. There are costs involved with moving, such as paying movers and taking time off work to prepare. You can expect to spend a few thousand dollars to move locally. If you’re planning a long-distance move, expect to dole out even more cash.
Splitting Retirement Accounts
Splitting a retirement plan is complex and requires a separate court order called a qualified domestic relations order (QDRO), which requires time and money to prepare. Even if you transfer retirement funds to your ex-spouse, there are still administrative costs involved. You may have to pay to prepare documents as well as transfer the funds. Plus, if your ex has not reached a certain age, they will be forced to pay significant fees when accessing the funds.
Splitting a Business
If there’s a business involved in the divorce, things get much more complex. First of all, you will need to value the business, which can cost $10,000 or more. If you are both considered business owners, then you will need to split the business. If you are keeping the business, you will need to give your ex their share of the business, which means more marital assets. You will be left with fewer assets, which can impact retirement. If you decide to sell the business altogether, then you can just give your ex their share of the sale.
There’s a lot involved in the divorce process and it can be time-consuming. You may have to take time off work for lawyer meetings, mediation sessions, and court. Unless you have paid time off or vacation time, this can result in lost wages. This means you will have even less money to pay for divorce costs.
You may also see more costs related to healthcare after a divorce. If you were on your spouse’s medical insurance in the past, you will need to secure your own now. This can add hundreds of dollars a month. On top of that, you may need to see the doctor more as you develop medical issues due to the stress of the divorce. You may develop high blood pressure or have anxiety problems that require medication. You may have emotional problems that require the assistance of a therapist. These are all things that cost money, so keep these costs in mind.
Contact Us Today
Getting a divorce is an expensive endeavor, which is why many couples put it off. All the hidden costs involved could wreak financial havoc on a person and affect their finances for a long time.
The Ohio divorce attorneys at Lawrence Law Office have the necessary experience and expertise to advise you on all aspects of your divorce case. We’ll leave no stone unturned. Schedule a consultation with our office today by filling out the online form or calling 614-228-3664.