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How can you prepare for the costs of divorce?

On Behalf of | Apr 20, 2023 | Divorce |

Before a divorce, most couples understand that the divorce will affect them financially. After all, you could move from a two-income household to a single-income household. Despite expecting various costs, there may be hidden costs that couples miss.

Knowing what to expect in advance can help prevent you from experiencing unwelcome surprises.

The cost of hidden assets

Do you worry about your spouse hiding assets from you? You may want to monitor your assets and finances closely if you do not have a cooperative spouse. Keep track of all bank statements, business documents and other financial paperwork. Sometimes, you may require forensic accounting to ensure all your assets remain accounted for. Hidden assets can not only cost you in a divorce, but it can cost you to uncover them.

The consequences of taxes

When married, you experience a variety of tax benefits. However, following a divorce, you. may not be used to what your tax bill looks like. Taxes tend to be complex, so you must consider what your taxes may look like before the tax year ends. If you have children, they may also impact your tax bill. Only one party can claim the children as dependents each year after a divorce. Some parents choose a rotating schedule to claim their dependents every year.

Think about the different costs that you and your spouse shared, from bills to insurance plans and other lifestyle costs. Preparation is the only way to alleviate financial stress throughout the divorce. When you know what to expect, you can plan accordingly.