Divorce is not just stressful, it is also expensive and time-consuming for both parties involved. Even if you and your ex have secure, high-earning jobs, you may be blindsided by the financial impact that divorce has on your life. This is one reason why it is so important to construct a financial plan when you are divorcing and take into account all the additional expenses you may face during the process.
Consider the following major expenses that may emerge when you are going through a divorce. Whether you are the primary earner or depend on your ex to provide for the family, you should be prepared to seek financial support if necessary and take steps to protect your assets in the divorce.
Many people are unprepared for the cost of litigation. According to US News, while there are few statistics that accurately identify the cost of divorce, litigation can cost anywhere from $15,000 to $30,000. These numbers are often inflated even further when exes enter financial disputes or custody battles. It is important to account for the potential cost of litigation when you plan your divorce.
It is not uncommon that a divorce requires you to take time off from work to deal with its demands. You must meet with representatives, go through intensive financial planning and negotiate details such as custody if you have kids. These factors can lead you to spend less time at work, and less time at work may impact your income. Loss of income is a major expense that many people overlook.
Just as you may be forced to take time off from work, a divorce may also force you to find child care if you and your ex have kids. While you are tending to the meetings and obligations that your divorce demands, you may need to invest in a child care provider to ensure that your kids are not involved in the process any more than they need to be.