Divorce is never an easy proposition for Pennsylvania residents. However, there are times when it’s the only option. While many people know about the legal costs of going through a divorce, there are several other hidden costs that people don’t always consider.
Many people have health insurance through their employer or their spouse’s employer. If your coverage comes from your spouse’s job, you must find your own health insurance policy. If you haven’t been paying for your health insurance, it becomes a significant part of your budget following your divorce.
COBRA, a temporary, self-paid insurance policy, is usually available for up to 36 months following a divorce. However, it’s typically more expensive than the type of insurance you get from an employer.
Depending on how the judge in your divorce case rules, you may assume responsibility for the mortgage on your home. While you and your spouse spend years sharing that expense, it becomes your sole responsibility when you get the marital home in a divorce.
It’s also worth noting that you may have to buy out your ex’s equity in your home. Even if you don’t perform a buy-out, refinancing the mortgage to remove your spouse’s name is often expensive.
Division of retirement accounts
The division of retirement accounts not only reduces the amount of money that you have, but it also incurs several unexpected costs. Typically, the transfer of retirement funds requires a qualified domestic relations order (QDRO). This order usually costs around $1,000 on its own.
Paying for legal representation, taking time off work to attend divorce hearings and a sudden loss of income make divorce expensive. Knowing about the hidden costs allows you to better plan for your new financial future.