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6 Overlooked Expenses To Consider When Financially Planning For A Separation Or Divorce

A calculator on a desk.
Divorce is an expensive process, so make sure to do some pre-divorce prep financial planning.

There is a lot of financial planning you should do when considering a separation or a divorce. I know firsthand how daunting it can feel, but remember, doing your homework before you split sets you up to make smart choices and create financial clarity as you move forward.

The good news is that it's never too late to start planning for a more secure financial future. So with that,

Here are 6 expenses you'll want to take into consideration when preparing for a separation or divorce:

Health Insurance divorce financial planning

If you've been covered by your spouse's plan you should start researching your coverage options ASAP. Maybe your work offers a plan, or you might qualify for COBRA, or you'll need to investigate individual plans, no matter what your choices, make sure to take those costs into account for your life after divorce.

Childcare And Other Child Costs

Occasional babysitting, after-school childcare, a nanny or daycare expenses don't end with a divorce. In most cases childcare is considered a shared expense if it is necessary in order for both parties to be able to work.

Check with your attorney about all child expenses that will be shared after your divorce is final, and start making a list of those costs to share with your co-parent so there's no "I didn't know I had to pay for that!" after your split.

Retirement Savings

If you have joint retirement accounts, start thinking about how you will be able to save on your own. If you're headed for a Gray Divorce it's imperative you address this as you'll have less time in the workforce to make up for the loss of income that divorce can bring. Consult a financial advisor to help create your post-split retirement plan.

Pro Tip - Some banks provide financial advisor services as a part of your banking account benefits.

Ongoing or New Tax Payments

If you have existing tax bills to pay off you'll need to factor that into your expenses. Other things to take into account are paying capital gains tax on assets you sell due to your divorce.

Consult with a tax profession as soon as possible in order to pinpoint any possible tax issues your split might create.

Divorce Fees

With the average cost of divorce in the United States in 2022 coming in at a whopping $15,000.00 to $20,000.00 (per Forbes Advisor), anticipating the costs of the divorce process and factoring them into your budget is a must. You'll want to earmark some funds to cover the cost of an attorney, mediator, and divorce filing fees at the very least.

Property Expenses

Whether you're keeping the family home, or buying something new after your divorce, get granular about ongoing expenses to make sure you'll be able to comfortably cover those costs on your own.

Don't forget about debts too!

Make sure you are on top of your budget and include all of the above when crunching the numbers. This monthly budget calculator makes assessing your money easy by walking you through every possible expense and does all the math for you!

Divorce is hard. The Divorce Planner makes preparing for one easy.


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