6 Overlooked Expenses To Consider When Planning For Divorce

There is a lot of financial planning you should do when considering divorce. I know it can feel daunting but remember, doing your homework before you divorce sets you up to make smart choices and create the best version of your next chapter! Don't worry, Divide & Thrive has got your back. 

Here are some expenses you'll need to consider when preparing for a split:

Health Insurance

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  

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.

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 (for information about what Gray divorce is click HERE) 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 a tax profession to pinpoint any possible tax issues your split might create.

Divorce Fees

Remember to earmark some funds to cover the cost of your attorney, mediator and divorce filing fees!

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! Check out this post about Divorce & Credit Cards.

Want a planner that walks you through how to figure out your financial realities? Take a peek inside of Divide & Thrive's digital divorce planner HERE. It makes divorce preparation easy!

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