Most people have heard that divorce is expensive – but they don’t really understand what that means.
Legal fees and filing costs are only part of the equation, and they are probably not going to be your most significant expense. To be financially prepared for your divorce, it’s important to consider the following potential expenses:
1. Rental deposits or mortgage refinancing
Are you moving out of the family home and into an apartment? Are you thinking of keeping the house? Both have their cost.
If you move into an apartment, you’re going to need the security deposit (plus the first month’s rent). If you keep the house, you’ll probably have to refinance – and that means changing your interest rate and potentially adding years to your loan.
2. Utilities and insurance
Unless you have all of the utilities in your name and you’re moving to a location that’s serviced by the same companies, you’ll probably have to put new deposits down. That can add up to a significant chunk of change.
So, too, can new insurance policies. Whether you’re a homeowner or a renter, you’ll need a separate policy in your own name so that your property is protected.
3. Furnishings
When you split the marital estate, you have to split all the “stuff” that it takes to run a household – from plates and pans to furniture and linens.
If you’re lucky, you’ll be able to source a lot of what you initially need from family members, friends and thrift stores – but there are bound to be certain things that you’ll have to buy.
4. Unexpected debt
Aside from splitting the assets, you also have to split your debts. That may involve refinancing your car or taking on credit card debt that you weren’t necessarily expecting.
You may also find yourself adding to your credit card load or taking out personal loans to pay some of the expenses you have during this time, so it’s important to have a realistic plan in place that will let you pay things back over time.
5. Therapy bills
While it’s tempting to just “white-knuckle” your way through it, most people experiencing such a monumental life event can benefit from therapy (if only to figure out how to avoid falling into another bad relationship).
Those co-pays can be costly, and there’s no guarantee on how long the process will take.
When you’re approaching a divorce, everything can feel overwhelming. Legal guidance that’s specific to your situation can help you feel more prepared.
At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-665-3903 or by contacting us online.
Let Me Be Your Brave
Mia Poppe, Esq.
Managing Partner