People in Southern California who get divorced know that they will have to incur certain expenses that they might not incur if they were married. However, in many cases, people elect to begin the divorce process before taking into account what those expenses might be.
Here are some of the more common types of expenses that people who get divorced might very well have to face:
- Updated insurance. People might expect to have their spouses care for them as they age. However, with a spouse out of the picture, that possibility may no longer exist. Long-term care insurance can be a way to still get the care needed as people age.
- Changes in taxes. Most people who are married file as married filing jointly, which generally has the most expansive tax breaks. When people divorce, they will have to file as a single person, which can be more expensive.
- Increased childcare expenses. Married people might be able to stagger their schedules so that caring for children is less of a burden. In a single-parent household, however, paying for childcare might be required.
- Different retirement planning. With only a single person contributing to retirement plans, expenses could be higher. In addition, distributions once a person reaches retirement age will likely be lower.
- Legal fees. Some people might be tempted to navigate a divorce on their own, without legal advice. However, in many cases, having an experienced divorce attorney can make the divorce process less stressful and, in some cases, more beneficial in the long run.
Source: Los Angeles Times, “Five ways divorce will impact your finances,” Stuart Pfeifer, March 28, 2013