A divorce is not only a life-changing emotional process, but it also is often a major life expense. On top of the expected costs for divorce in Illinois, you might find that there are possible surprise expenses that can add to the total spent on the process. However, anticipating these costs and having a plan for how to handle them might help you secure a stable financial future.
How hidden costs can affect your financial stability
You might begin the divorce process already thinking about how the dissolution of the marriage will impact your financial stability. You might know that you will need to figure out how to live on only one salary when you had previously been a two-wage family; your assets will need to be divided; and you need a budget for the total cost of the divorce, including consulting with a variety of professionals. Finally, you might have planned for how to cover your financial responsibilities post-divorce. However, if you are suddenly faced with hidden costs that you had not predicted, all those financial plans might be threatened, and you might yourself struggling to get back on your feet.
The three major surprise divorce expenses
There are three major surprise expenses that can derail your post-divorce financial plans. These expenses include costs associated with:
- Dividing your retirement assets, which can include legal fees and tax penalties if not done correctly
- Settling on marital real estate, which can include refinancing costs, transfer fees and other tax implications
- Choosing a health insurance plan whether by continuing under a spouse’s plan through COBRA or joining a new plan as a single person
While the surprise costs can wreak havoc on your financial plans, you can prepare for them by learning about what each type of expense entails and what your options are. This preparation might help ensure that your financial plans stay on track.