We all know that a messy divorce can get expensive. Legal fees alone may be enough to make your head spin and your wallet cry for mercy, but that is only the tip of the iceberg. If you're not careful, splitting from your spouse could leave you both emotionally and financially drained. If you're considering a divorce, here are the top 4 hidden costs that you may not have considered yet. Make sure to plan for them before you sign the paperwork!
1. Cheap Attorneys Can Cost You
In every city, town, and village there is a cheap attorney. They are usually the one shouting from your TV as you flip through the channels or plastered on buses and billboards around the city. This attorney has one selling point - his or her rates are cheap, or so they seem at first glance.
In reality, the rates are almost never as cheap as advertised unless you meet a very specific set of requirements to qualify. This kind of budget attorney can end up costing you vastly more money in the long term. It's much better to spend a little more money upfront on a quality legal professional who has the experience and will know what's best for your case and how to get it. You want a representative who can devote his or her time and attention to your individual case, not someone rushing to get through as many divorces as possible to make a buck.
2. Splitting Assets
Of course, you were expecting to suffer some losses during the asset division, but there may end up being more than you bargained for. For example, if the couple owns a home together with a significant amount of equity, you may have to liquidate that by selling the house. This will cost you time, effort, Realtor fees, plus a few thousand dollars of closing costs when you do sell. Talk about an expensive headache!
3. Higher Tax Rates
There are numerous tax advantages available to married couples that you may have taken for granted during the course of your relationship, and if that's the case, you may be in for a rude awakening. Taxpayers who file jointly enjoy higher deduction limits and income threshold than those who must file individually. If you're considering divorce near the end of the year, it may be financially worth it to wait until the New Year and cash in on those more forgiving tax brackets one last time.
4. Economies of Scale
As the saying goes, two can live almost as cheaply as one. Sharing a residence, buying bulk food and household goods, and splitting childcare are all money savers that come as a part of marriage. After the split, however, you will each need to maintain your own residence. You also must each pay for your own food and household necessities as you were before--this time on half the income!
Divorce is expensive. Knowing that going in can help you avoid some common pitfalls. Expect to spend more on taxes and household goods, prepare to sell your house, and hire a reputable lawyer from a firm like Borowiec & Borowiec PC Attorneys At Law.Share