Too often, individuals get caught up with the concept of winning or losing during the divorce process. They approach every negotiation like a battle and every compromise must benefit their own position. While every relationship is different, it might be better to phrase the situation in healthier terms: you gain an exciting, independent future and you lose the need to continue a failing marriage.
With that in mind, however, it is wise to remember there are numerous hidden costs that often come to light in the weeks and months after a divorce. Here are some common costs that could shock the newly divorced:
- Moving costs: Whether the divorcing couple shared an apartment, owned a home or lived in a condo, it is almost a certainty that one party will soon leave. It will cost a significant amount of money to rent or buy a new home along with the direct costs associated with it such as hiring movers and setting up new utilities.
- Buying new furnishings: Closely related to the first point, the displaced party will likely purchase furnishings for their new home. From furniture and appliances to landscaping, it will cost a significant amount to build a comfortable dwelling.
- Insurance plans: With all the financial changes that cascade from property division, the divorced couple must address various insurance plans to ensure they reflect the new reality. From health insurance and homeowners insurance to vehicle coverage, some former spouses end up paying a cost they had not previously had to absorb.
- Creating separate finances: This cost is based on time and effort. After the divorce, the ex-spouse must go through their finances and ensure all formerly joint accounts are separate. Everything from a shared credit card or family phone plan to personal loans or a loan consolidation plan must be carefully examined and corrected.
There are many fees and legal costs associated with a divorce. Unfortunately, the divorcing couple is often shocked by numerous hidden costs that, upon retrospect, seem obvious. It is wise to work with an experienced attorney who can provide the guidance and insight necessary for an efficient process.