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The potential financial effects of your divorce

On Behalf of | Oct 14, 2022 | Divorce

While the end of your marriage will bring significant changes to multiple areas of your life, one of the areas where you may see the most changes is in your finances. After the division of marital property and other adjustments, you may find that your financial security is no longer the same. This is why it is critical to have reasonable expectations for your post-divorce life and to seek terms that will provide you with stability and security for years to come.

The financial changes brought by divorce are inevitable, but that does not mean you cannot have long-term stability. It will be in your interests to learn about the potential changes you could face and how you can prepare for them. By looking ahead, you can make your transition to post-divorce life easier for you and your Colorado family.

Money-related changes you may not expect

According to statistics, the cost of divorce is approximately $15,000 on average. In addition to legal fees, you may also have to move, pay child support or simply adjust to life on one income. This is not always an easy transition, and many spouses find themselves struggling with expenses they did not expect. Some of these may include:

  • The cost of new or additional health insurance coverage
  • Paying for childcare if you have to return to work or work longer hours
  • New home expenses, including furnishings, taxes and more
  • Tax obligations associated with keeping certain marital assets
  • Credit card balances and your portion of marital debt
  • Contributing to retirement plans and rebuilding your savings

These are only some of the financial changes you could experience during and after your divorce. Preparing ahead for these and other expenses may help you navigate this transition with less stress. It is also critical to tenaciously pursue terms in your final financial settlement that are fair and reasonable.

Your post-divorce future

There is a lot at stake for you during your divorce. You will benefit from seeking knowledgeable insight regarding how you can seek a resolution that will provide you with the means to support yourself and rebuild your life after the divorce is final. The post-divorce expenses and financial changes you will encounter make it especially important to make decisions that are practical and beneficial for your long-term interests.