The costs of family transition can be pretty surprising and might catch you off guard if you aren’t prepared when going through divorce or separation. Some can be high enough to cause genuine problems that affect you, your ex, and the children. So what are these? From having to run duplicate homes to lost earnings and career changes, here are some of the most common.
Legal, Financial and Administration Fees
Among the biggest expenses and most unexpected when going through a separation are the fees associated with legal proceedings, financial arrangements and administrative work. While a divorce lawyer can be a massive help when transitioning by assisting with things like asset division and court filings, they don’t work for free. If you are currently thinking about separation, then consider these costs as they can add up pretty quickly and take you by surprise.
The Cost of Effectively Running Two Homes
Most people build their lives around the income they have, which is basically halved when going through a separation or divorce. Where your income would once comfortably support your family, it now has to stretch across the two households. Upfront costs such as deposits and rent advance when moving out also add fuel to the fire. Then there are extras such as bills, furniture, and even good bills that you still need to purchase for your new home and your kids’ home.
Long-Term Costs of Family Transition
Separation can be expensive, but you can avoid around 75% of the costs with early agreement and mediation. As such, you can save a lot in the short-term. But what about the long-term? Suppose you have engaged in low-risk trading strategies for long-term wealth; any holdings can be put at risk or significantly impacted by splitting them. There can also be unequal financial positioning when assets such as the family home, home equity, and retirement funds are split.
Lost Earnings and Career Pivots
Going through a separation means attending many meetings with your legal team, your ex’s legal team, and mediators. These can all add up to significant time away from work, putting even more strain on your funds. Even further, you could lose a job because of this, or suffer career setbacks. Then there is the possibility you need to start a new job that doesn’t pay upfront, leaving you with a month of no money, and the costs of beginning a new career.
Expenses Related to the Children
Just because you leave the family home, it doesn’t mean you shirk your responsibilities. As a separated couple, both parents have a duty to keep things as normal as possible for the kids. As such, you still need to financially support a child after separation, which requires purchasing double what you would normally need. For example, the kids will need two sets of clothes at home and when they stay with you. And this extends to school stuff, food, and toys.
Summary
Legal, financial and administrative fees are among the costs of family transition that catch most people off guard. On top of these, you also have long-term asset reduction, and you may have to buy two sets of everything for both homes so the children always have what they need.
