What to Expect: Five Unexpected Expenses During a Divorce
Tuesday, October 8, 2013, 1:00 AM | Leave Comment
There is no getting around the reality that divorce is messy, emotionally painful and disruptive to your life. It is also recognized that divorce can be expensive as well. Everyone expects many of the costs of divorce – legal bills, experts to help in a custody battle, the expense of setting up a new household – but there are some divorce expenses that many people do not anticipate.
This article will discuss some of the expenses that you may not be expecting when getting a divorce.
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Health Insurance
Divorce will make you ineligible for inclusion on your spouse’s health insurance plan. If you do not have coverage available through your employment or a disqualifying preexisting condition, it can be very difficult and expensive to obtain replacement insurance. Recent changes in health care legislation may make it easier to get coverage but you should definitely consider the impact of loss of health insurance. A Mullins divorce attorney can help you with this complex issue.
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Group Memberships
Most couples have subscriptions or memberships at the “family” rate, which is typically much cheaper than the individual price. Gym memberships and mobile phone plans are prime examples of unexpected expenses when they are split into individual memberships.
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Job Market Reentry Training/Education
If one spouse has been out of the job market for a while, retraining or education may be needed to make him or her competitive for employment. Many divorcing couples factor this need into alimony calculations but the cost of retraining or reeducation could be much higher than expected especially if an academic degree program is involved.
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Taxes
Divorce can change your tax filing status to “single” or “head of household”, depending upon your situation. These tax statuses generally have a higher tax rate than the “married filing jointly” status previously used and can result in an unexpectedly higher tax bill at filing time. You may be in for an unpleasant surprise if you do not anticipate this possibility and adjust withholding/estimated payments accordingly.
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Homeowner, Car and Life Insurance
These types of insurance are often “bundled” together from one insurance company, resulting in a discounted premium. When the accounts are separated in a divorce, the unexpected result can be higher premiums.
There are many unexpected expenses associated with divorce and you should be ready for them. Retaining an experienced professional for advice can be a great way to minimize the chance of being caught by these types of financial surprises.
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