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Unexpected expenses are common during a divorce

On Behalf of | Jun 28, 2023 | Family Law |

When New Jersey couples get divorced, they will generally think about their primary concerns first and foremost. That includes child custody, child support, alimony and property division.

Of course, there are inevitable costs in every divorce. Still, there are some expenses that come as a surprise. To avoid the shock and be fully prepared, people should think about underlying aspects and how it will impact their bank account.

Three costs divorcing couples might not have considered

Three costs that take people by surprise include health insurance coverage, retirement accounts and real estate.

In some marriages, one person has a job or a situation where they provide health care for the spouse and the rest of the family. For example, a person who works in the public sector generally has coverage. That likely ends after the divorce. An employment-based plan of their own could be needed. There are alternatives like COBRA for a specified duration.

When there is a retirement account, it might need to be divided. In these situations, a qualified domestic relations order could be required. It details the way in which retirement assets are split. Finding a professional to prepare it could be costly. Different retirement accounts have rules that affect how it is divided and the costs can fluctuate.

Parting ways with a spouse will mean looking for a new place to live and dealing with real estate. A couple that owns a home and has a mortgage or needs to transfer real estate could find themselves paying major costs. Buying out the other party can be expensive. So too is it costly to transfer ownership. Refinancing is an option, but its cost can vary based on market factors at the time of the divorce.

People need to prepare for all eventualities in a divorce

These issues can worsen an already complicated situation. While some couples are on reasonably good terms and can find ways to negotiate these unexpected costs, other divorces are not so simple. Being fully prepared includes having comprehensive help from qualified people from the start.