Five Ways Divorce Could Affect your Finances

 Posted on May 19,2013 in Divorce

Most people are aware that going through a divorce will have some sort of effect on your finances, but many are not aware of what those specific effects will be.  A recent article published by The Seattle Times has identified five major ways divorce can affect your finances, some of which you may not have expected. Legal expenses will be one of the most expensive aspects of your divorce.  It is not uncommon for people to spend thousands of dollars on legal expenses, even if the divorce isn’t particularly messy.  If the divorce is contested, you should be prepared to spend much, much more. Child-care expenses are another financial toll most parents going through divorce do not expect to take.  There is usually only one parent remaining in a household after a divorce, which means that child-care expenses will probably increase. Taxes are another area that can be affected.  Your taxes will increase significantly after switching your filing to single status. Retirement planning expenses can also increase after going through a divorce.  It’s important to consider that pension, IRA, and 401 (k) distributions will most likely be substantially lower as well.  In many cases, it is helpful to set up a retirement plan with a professional before finalizing your divorce. An area that many people do not consider when filing for divorce is their insurance.  After your divorce has been finalized, it could be important for people to purchase different insurance policies. Many people do not fully realize just how much a divorce can affect their finances.  They often think about salaries and incomes instead of looking at the bigger picture.  If you or somebody you know is entering the divorce process, be sure to contact an experienced Illinois divorce lawyer to answer any questions you may have pertaining to your financial status, as well as any other questions about the process you may have.

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