Divorce is the termination of a marital contract and the end of a union between couples. While this may be the basic definition of divorce, it is always complicated and can be a huge expense to both parties involved. Although most separated or divorced couples are aware of the huge legal bills that can accrue during the divorce process, there can also be hidden costs. Learn what you should know about the true cost of divorce.
The Very Obvious Expense
The most obvious cost of a divorce is the legal cost. In very simple divorces where no children or property are involved, the couple may be able to handle the divorce themselves eliminating the need for lawyers and high legal expenses. They agree to end the marriage and file the papers with the court system themselves. Unfortunately, there are seldom simple divorces like this.
When property and children are involved, hiring a lawyer is generally the first step in the divorce process. Lawyers may provide the first consultation free of charge but charge an hourly rate after this. While a divorce may cost $3,000 in legal fees, it can also be as high as $20,000 or more if it becomes complicated.
Hidden Costs
Besides the initial and ongoing cost of having an attorney represent you in a divorce, there are many additional and hidden costs that you may not be aware of. While some of these costs may be thrust upon you at the onset of the divorce, many are hidden and can affect for a long time in the future. Here are four examples:
- Taxes: If you receive property as part of the divorce settlement and decide to sell it, you may be responsible for capital gains taxes.
- Living expenses: In today’s economy, most families are 2-income families that pool their income together and share living expenses. After the divorce, you may have the same expenses but now have to pay them with only one income.
- Spousal support: If you have children, you probably expected to pay child support, but you may also have to pay spousal support. You now have the same expenses in your home as well as additional money going to your ex.
- Emotional cost: In even the most amicable divorces, divorces are emotional and can affect everyone involved. Many people find themselves seeking the advice of counselors whether for themselves or their children.
In Summary? Experts Cost Money
If you live in a state that permits filing for divorce online, you may be able to save some money because online filing removes the need for an attorney to draw up the papers. Of course, nothing is going to make a divorce free, but you may be able to save a penny here and there.
A divorce may require a lawyer and even a professional mediator to help settle things. Mediators generally charge by the hour and can be expensive. Any witnesses that may be required can also increase the cost of a divorce. The more people your attorney has to speak with regarding the divorce, the higher the cost is going to be. Whether it’s witnesses, medical professionals, mediators or necessary travel, all these incidentals cost money.
