Ending your marriage is one of life’s biggest hurdles. As you move forward from a divorce, you might also face a new financial situation. Most people go into divorce understanding that there will be costs, but there are some costs you may not know beforehand.
Preparation for all costs can help you adjust to the single life.
What are the costs of bringing your divorce to court?
Contested divorces tend to have higher expenses than amicable divorces. Not only is a contested divorce more emotionally taxing, but you may also have to hire various professionals to help fight for an equitable split. For instance, you may need expert witnesses, psychological evaluations and forensic accountants.
If you have children and cannot resolve custody and visitation independently, you may require custody experts to help come to a resolution before a judge.
What are the tax issues surrounding divorce?
While marriage can come with tax benefits, divorce can come with tax consequences. If you have children, you must choose which parent can claim child-related tax benefits. In some cases, former spouses rotate on and off each year regarding those claims. Make sure that you determine who will claim the benefits ahead of time, otherwise, the person who files first receives the benefits. Only one person can file for a dependent at one time.
In addition to court fees and taxes, you must consider the cost of moving on. If you had a shared income before, you might have to find a place you can afford on your own. Housing costs can add up when you do not prepare.