Though getting a divorce may not have been on your life’s to-do list, it is something that you have found yourself facing. Whether you have just made the decision to start proceedings or your case has already gotten underway, you likely have some concerns and questions. In particular, you may want to limit the effects that ending your marriage has on your wealth.
As a financially savvy person, you may have already taken certain precautions, such as having a prenuptial agreement or ensuring that you kept certain assets separate. However, divorce can still significantly affect you in ways that you may not have thought about. By considering unexpected but possible expenses, you may have an even better chance of protecting your wealth.
Don’t let these expenses catch you off guard
First, it is important to note that each divorce case is different. One Colorado resident may face unexpected expenses that are purely unique to his or her situation while another does not. Additionally, many of these costs may not relate to the divorce itself, meaning court costs and other legal fees. They can come from personal changes that need to take place due to your marriage coming to an end. Some financial changes that could affect you during and after this time include the following:
- Refinancing any vehicles held in both your name and your spouse’s name for your sole ownership
- Finding new living arrangements
- Getting your own cellphone plan
- Changing your car insurance and medical insurance
- Addressing any debt you may have co-signed with your spouse
- Going to therapy to help work through any emotional difficulties that may result from the divorce
While some of these expenses may not be necessary or applicable to your divorce situation, they may be worth taking into consideration.
Planning for the unexpected
Planning ahead and making contingencies for unexpected costs may help prevent you from feeling overwhelmed by the financials of your case and its aftermath. Additionally, it may help you determine areas of your case where negotiation may help lessen the financial repercussions, such as ensuring that you do not get more than your fair share of the marital debt. While you likely cannot think of every possible expense that could arise, setting aside an emergency fund may prove helpful in preventing a financial spiral that could have repercussions for years.