Divorce can be a particularly draining experience, both emotionally and financially. Arkansas residents might be aware of the legal fees that come with divorce, but they don’t plan for the hidden costs of divorce.
These are the costs associated with being a newly single person and separating yourself financially from your spouse. These costs can be immediate or only appear after your divorce is settled.
Health insurance and other employer-provided benefits
Some spouses choose to use their spouse’s employer-provided health insurance even if they work themselves. This is usually because your spouse’s plan is cheaper than yours or your work doesn’t offer health insurance.
Divorce means you can’t use that insurance plan anymore though. As a result, you might find that your out-of-pocket healthcare expenses go up with the change in health insurance.
Things like retirement accounts also take a hit when you go through a divorce. Your spouse might be entitled to part of your retirement account, which can take away from what you can receive.
Refinancing joint assets and accounts
Marriage often means investing in things like houses or cars together, with the understanding that it will better your lives. When you divorce, these things must be addressed. Sometimes joint property can be sold to a separate third party, but other times you end up buying your spouse out of their share.
If you keep the family home after divorce but you still have a mortgage, you will have to refinance the mortgage to be in solely your name. This means you have to go through the process of qualifying for the mortgage independently, as well as cover all fees associated with it.
Navigating the hidden costs of divorce can be challenging, but it’s not impossible. It’s important to take the time you need to prepare for your financial future and seek help when you need it.