Five Ways Divorce Will Impact Your Finances
The process of a divorce is not only emotionally draining, but can be financially draining, as well. There are the normal expenses that occur because of a divorce; child support, lost income, and spousal support. But, according to Samantha Fraelich, vice president of Bernard R. Wolfe & Associates, a wealth management firm out of Chevy Chase, Maryland, there are other ways in which divorce affects finances. In an article on latimes.com, Fraelich lists the five most common ways divorce affects one’s finances.
- Legal Expenses: Even if the divorce is amicable it will cost you thousands of dollars. In the case of a contested divorce, plan to spend much, much more.
- Taxes: There are tax breaks a married couple receive that an individual filing single will not receive. Expect an increase in your income taxes once you are no longer married.
- Childcare Expenses: Expect to pay more in childcare expenses for your former spouse will not be as accessible as he/she was when you were living in the same house. The majority of divorced parents find they are paying more in childcare expenses than they were when they were married.
- Insurance: When a couple is married, the one with the better health insurance plan covers the family. This coverage usually extends to short-term and long-term care insurance and life insurance, as well. Once you are divorced, your former spouse will no longer be covering you and you will need to purchase these types of policies.
- Retirement: When married, you have two people contributing to retirement accounts. However, once you divorce, expect those contributions to increase if you expect to have a comfortable income when you retire. It pays to seek professional advice when planning for your retirement.
When you have made the difficult decision to file for divorce, seek the advice of an experienced Florida divorce attorney. An experienced, dedicated attorney will not only assist you in resolving your differences, but will protect your interests as well.