Hidden Costs of Divorce

Divorce is expensive, and you already know this, but there are probably some costs that you haven't even thought about. We call these the hidden costs of divorce. It's important for you to be aware of these costs so that you can take steps to control them in your own divorce.

Let's jump into the divorce costs that you may not have ever thought about...

Higher Taxes - Your income taxes when you're married and file a joint tax return are almost always lower than when you file separately. Be prepared to consult a qualified tax preparer so that you file correctly, but also be prepared to pay higher taxes than you're used to.

Child Care - One of the most expensive and shocking costs after separation is child care. If you've been a stay-at-home mom, you know there is an expectation that you will go back to work. And child care is going to take a big bite out of your paycheck. This problem is often compounded if your ex isn't willing to pay his share of the daycare expense.

Healthcare - Family healthcare plans through your husband's job are often a much better deal than what you'll find if you have to pay for health insurance on your own. Hopefully you have a job that offers health benefits, but if you have to get insurance on your own, prepare to pay a lot for it.

Housing - Splitting up costs more when it comes to housing. Someone has to move, and that can get costly. Someone may have to refinance the mortgage, and with interest rates so high, this often becomes unaffordable. Or maybe you're both going to be paying rent for apartments, and with the rental market so hot, this is expensive too.

Legal Fees - When you're budgeting for your divorce lawyer, it's easy to look at the deposit or retainer they ask for, and forget that you might have legal fees well beyond that. Plan on additional costs to get the divorce done, and prepare yourself for the possibility of added legal fees down the road. Changes to child support, spousal support, or custody arrangements can have you back in court, and you will most likely need an attorney representing you.

Every divorce is different, but everyone who has been through one will tell you the same thing. It's expensive. This is why it is so important to know as much as possible about your money during the divorce ... so you can get the best possible financial settlement.