NEW YORK, March 16, 2023 (Newswire.com) - Credello: Nobody gets into a marriage thinking they'll divorce one day. If they do, it probably means they reached an impasse with their partner. One or both individuals feel they're better off going their separate ways.
If you're considering getting divorced this year, you're probably thinking about how that might change your finances. You may feel like your divorce and credit score plummeting might coincide. That can happen in some cases.
You should know about some of the biggest hidden costs associated with this life-changing event. We'll talk about some of those right now.
1. Business Ownership Costs
Sometimes, you'll own a business with your spouse. This does not happen with every marriage, but if you co-own a company together, you must think about how you're going to split it up.
Often, one partner wants to keep the business, and they want the other spouse to no longer have anything to do with it. If that's the situation you find yourself in with your partner, you will probably have to get the company professionally valued. That way, you can figure out how much your partner should pay if they're the one who wants to keep the company.
A professional company valuation can cost anywhere from $5K to $15K. That's certainly a sizable hidden expense you might not have considered.
2. Moving Costs
You and your spouse may own a house together. You want to move out, or perhaps you'd prefer they leave instead.
Either way, you'll need to take the moving costs into account. If you have lived with this person for many years, they might have accumulated a lot of furniture and other possessions. If they're the one moving out, they might insist that you pay the moving expenses. That can sometimes cost several thousand dollars.
If the two of you still live in an apartment, you might not have as many possessions. It will likely not cost as much to move if that's the case.
3. Retirement Savings
Maybe you and your spouse were saving for retirement together. You might share some joint retirement accounts, or perhaps you have some investments that you own jointly.
It will often cost you some administrative fees if you divvy up that money or those assets. If you move some of the cash that's in a retirement account, you might pay a hefty penalty for that.
Watch Out for These Hidden Costs
If you feel like you have no choice but to divorce your spouse this year, you will move forward with that, no matter the cost. If the two of you can't reconcile your differences, then no amount of money in the world might convince you to keep living under the same roof.
You can make sure the split happens, but there are hidden costs that will probably go along with that, and you should be aware of them before moving forward. The administrative fees, if you start dividing up your retirement savings, can take a big chunk. Moving that money around before you or your spouse hit the appropriate age can incur financial penalties.
If you two own a business together, you'll likely have to get it professionally valued. That's the only way you can figure out how much one of you owes the other if a buyout situation is happening. A professional business valuation can easily cost anywhere from $5K-$15K.
You should know about the moving costs when one of you moves out. If one of you leaves the house and takes some of the furniture, books, clothing, and other items, you must rent a truck to carry all that.
These hidden costs are annoying, but if it gets you two away from each other, that might be what both of you most desire. You can always make more money, but for now, dissolving the marriage is probably foremost in your mind.
Credello is a financial tech company offering personal finance tools that simplify financial decisions through personalized, on-demand recommendations — so users can borrow, save, or invest with confidence.
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Original Source: The Biggest Hidden Costs of Divorce in 2023
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Lifestyle - TREND MAG originally published at Lifestyle - TREND MAG