The Hidden Costs of Divorce

 Posted on April 13,2013 in Divorce

Divorce is often hard on the wallet. Lost income, asset distribution, child support and alimony payments are only some of the expenses. However, there are other ways that divorce impacts your finances, according to a recent article in the LA Times. "Most people don’t realize the depths of what divorce can do when it comes to their finances," said financial planner Samantha Fraelich. "It is usually a matter of much more than a loss of salary or income." Here are a few of the hidden costs of divorce:

Legal expenses. Legal expenses can be thousands of dollars, even if  ou’re keeping your divorce on good terms with your spouse. But if the divorce is contested, expect to see an increase in the expenses.

Child Care expense. When you become a single parent, you may have to hire child care. Households often end up paying more for child care than they imagined.

Taxes. When you are divorced, you cannot file for taxes jointly with  your former spouse anymore. Your single filing status can increase your taxes considerably.

Retirement planning. Without the financial backing of your spouse,  your retirement planning expenses can increase. In many cases, pension,  RA and 401(k) distributions will be much lower too. It is a good idea to obtain a retirement plan before divorcing.

Insurance. Married people do not often get long-term care insurance because they expect their spouses to care for them. However, after a divorce, obtaining such policies may become more important.

If you or someone you know is considering divorce, make sure you have the best possible legal defense on your side. The assistance of a skilled divorce lawyer is one of the best ways to ensure your divorce won’t cost you a fortune. Contact a capable divorce attorney in Lombard, Illinois at your earliest convenience.