While it’s not something we like talking about openly, it’s difficult to hide just how much a fact of life divorce has become for many people. The New Year is said to present new beginnings, and that’s no different where the cost of divorce is concerned. January sees a spike in the number of couples instructing divorce lawyers, and the online searches go through the roof, too.
Obviously an unfortunate reality to confront, the intricacies of divorce are rarely discussed. Most people only discovering what is required and how much they cost in the event that they themselves should be experiencing one.
How much does a divorce cost?
Even the most basic, straightforward, amicable divorce can cost each party well over a thousand pounds in legal and court fees, but that obviously isn’t always the case. In the event that there should be children involved, custody to settle and assets to divide, costs can go through the roof while the process is being prolonged. The proceedings can take between four months to a year to become official and legally binding. But in hostile cases this can be greatly extended, which will naturally multiply costs and outgoings.
In such cases, some larger surveys have alluded to a joint expenditure of over £40,000 per couple, or over £20,000 each. Included in those costs – on top of the legal fees that are to be expected – is the unexpected, but wholly essential. Such as outgoings to set up new individual accommodation, child maintenance, purchasing new vehicles and possible relocation. In short, life after divorce is going to be challenging looking at the expenditure.
What are the hidden costs?
Additionally, however, there are some hidden cost of divorce that aren’t often thought of. One, for example, is the money spent dating and searching for a new partner now that you’re single again. Going out for dinner, drinks and generally putting yourself out there can be an expensive way to spend time. Especially when you’re looking to impress – so it isn’t too surprising to see those costs stacking up so significantly.
Another overlooked cost concerns those who stay in their marital home alone post-split, as many look to completely redecorate and refurnish the space. In order to get rid themselves of previous memories. While it’s a purely cosmetic outgoing, it can stack up considerably, but many feel that it’s a necessary step in moving on. Money spent in similar ways include holidays, makeovers, new gym memberships, therapy, new gadgets and jewelry shopping, as many newly divorced people seek ways to raise their mood and happiness once the process has been completed. Out of so many hidden costs of divorce, the following four are of top ranking.
1. Taxes
The amount of income tax payable as a single person is much higher than that as a married one. So, you will have to pay more income tax after the divorce. Additionally, the recent tax law changes have also affected the payable amount of tax a lot. Consequently, the tax amount rises after the divorce. Moreover, divorcing also affects capital gain taxes very badly. Hence, after the divorce, you will have to transfer any amount coming under the act of divorce with utmost care.
2. Real Estate Expenses
Real estate expenses like the realtor’s fee and closing costs of the sale become liable on your part if you have to sell your house because of your divorce. You will have to pay for the renovation of your house, if it needs so, before you sell it. Otherwise, you will have to sell it under its worth in a bad market. If you decide not to sell your house, it will definitely prove expensive too. Besides, buying your spouse’s interests in your house is never going to be easy either. You will have to get your house estimated by passing it through multiple appraisals. All this will need money for its successful completion.
3. Employment Costs
It is quite possible that you may have to keep yourself out of your workplace while tackling the divorce process. This may result in making you totally jobless. In order to get yourself reemployed, you may have to pay to get additional training or education to regain your skills. It is quite possible that you may have to get a new certification or degree to fulfil the requirement of the new job. In addition to the cost on your improvement, you may also have to spend a lot to buy new clothes to make yourself presentable every day when you show up. Furthermore, you will also have to spend a lot on travelling to and from your new office.
4. Health Insurance
A married person typically enjoys one health insurance policy for the whole family: husband, wife and kids. It ends automatically the moment the marriage bond dissolves. Most health insurers do not continue to cover you on your spouse’s insurance policy. So, each spouse will have to pay for his or her own policy, causing more financial damage.
Image by pexels