When people think about the cost of a divorce, the bills related to the actual ending of the marriage itself are top of mind. Spousal support, child support, and property division might also be on one’s radar. But what about the cost of moving on itself – from finding a new place to live to taxes as a single person, to even something as simple as no longer splitting the cable bill? Often, people find themselves unprepared for these situations.
Here are a few “hidden costs” that Michigan divorcees should keep in mind when budgeting for their post-married life:
- Moving costs: Many people pursuing a divorce have not moved in a long time (and those who have likely did so as a couple with split expenses). Firstly, people should consider the cost of selling their shared home if they are owners. This can involve capital gains taxes, real estate lawyers, and real estate agents. After that come relocation costs, which can include deposits or down payments, utility setup costs, and moving expenses.
- Taxes: Depending on where a person lives and their child custody situation, tax time may look a little different in the first year after divorce. For example, child-related tax benefits can only go to one person. It is a good idea to think ahead regarding these tax considerations and to incorporate them into a divorce agreement.
- The single lifestyle: For most people, taking on life as a newly single person means saying goodbye to splitting the Netflix subscription, bundled rate insurance policies and the family phone plan. These expenses can certainly add up.
The costs of being single versus in a marriage can be shocking, especially for those who have not thought through all the potentialities. This can have a financial impact, but also an emotional one, especially if a person feels overwhelmed or unprepared. One important tip here is to work with professionals who have experience in divorces and can help to set expectations and provide clarity. This includes finding the right Michigan family lawyer.