Possible financial challenges of going through a divorce

Possible financial challenges of going through a divorce

| Feb 13, 2021 | Firm News

Dissolving a marriage can be a stressful and trying endeavor, and there may be a variety of topics for you to cover throughout the process. While preparing for every possible scenario you may face during this time could prove exceedingly beneficial, such an endeavor could also be somewhat complex in nature. 

While it might seem as though your primary financial concern could rest in preparing for the process of property division, things might not always be so simple. Knowing some of the potentially unexpected financial challenges that might arise could also be integral to safeguarding your future. 

Addressing expenses 

The end of a marriage may bring about a variety of changes in your life, some of which could carry certain financial ramifications. Some examples of possible expenses that may stem from your situation could include: 

  • Relocation: At the end of your marriage, there is a chance you might face the need to relocate, even if only a short distance, and the costs of obtaining new living arrangements and moving your possessions to your new space could be substantial. 
  • Refinancing:  A similar experience could also leave you facing a need to address property titles such as mortgages and car loans, and refinancing or obtaining a new loan or mortgage can be costly at times. 
  • Insurance: Seeking out new insurance policies could also be a factor, and as some policies may carry higher rates for single individuals, such a topic could prove relevant to your situation. 
  • Memberships: There may also be certain financial ramifications involved with the process of separating cell phone plans and other monthly memberships and obtaining new ones in your own name. 
  • Debt: The process of property division also addresses marital debts, and as such, it is possible that you might be responsible for certain types and amounts of such debt after finalizing your divorce. 

Identifying the unexpected costs of going through the end of a marriage could play a vital role in helping you develop a budget to assist with the transition. 

The future 

It may come as no surprise that the outcome of your divorce could have a lingering impact on your life, as even short-term financial challenges resulting from a similar life experience could pose some level of threat to your monetary future. As such, taking every possible measure to prepare for this aspect of divorce could be integral to developing a strategy to safeguard your financial future during legal proceedings.