It’s no secret that an Arizona divorce brings with it unexpected expenses. The simple fact of disentangling shared finances as the parties plan for their new lives apart can result in a number of new costs that may impact one or both individuals. Those people who plan ahead and gain an understanding of the costs involved following a divorce may be in a better position to negotiate a comprehensive settlement that is also fair to both sides.
Health insurance policies, car and house insurance premiums, as well as income tax obligations are all potentially impacted once a divorce is finalized. Retirement plans, life insurance premiums and even memberships at the local gym could also require additional payments to maintain. Family discounts that may apply when a couple is married may be inapplicable once two households are established and expenses are no longer shared.
The separate health insurance plans that are typically required after a divorce may result in higher costs for at least one party, if not both. Also, discounts for multi car insurance policies or for placing a homeowner’s policy with the same insurer that covers a family’s motor vehicles will likely be lost to the spouse who no longer resides in the marital home. As for income taxes, a change in filing status from married filing jointly could significantly impact the amount due for state and federal taxes. Retirement accounts that are divided in a divorce also may result in additional costs for at least one party, particularly if they must match the employer contributions no longer made by a former spouse’s employer.
Understandably, an Arizona divorce brings change. Invariably, change results in expenses that many may not have previously considered. However, the process need not be unnecessarily complicated. Those that investigate the added costs that are typically involved may be ahead of the game when it comes time to address these issues formally. The best first step may be to envision what added expenses may be applicable to one’s unique circumstances and then seek guidance about the best way to achieve a fair result.
Source: Huffington Post, “Six Unexpected Expenses Divorcees Face,” Susan Saper Galamba, Jan. 8, 2013
