One challenge of dealing with a divorce involves figuring out a number of expenses associated with the process. These typically include court costs and fees and the amount the parties pay an attorney that vary due to many factors.
As part of the entire process, couples with a high-net-worth could also face other expenses that might come as a surprise.
Selling the home or other real estate holdings
An article in U.S. News & World Report describes some of the unanticipated costs of selling a home during a divorce. Since most people do not plan for a divorce, the home could need a series of repairs to get it market-ready. Getting the home ready for a sale to maximize its market value could cost thousands of dollars.
Individuals should also take into account the fees and realtor commissions on the sale of a property. With commissions costing as much as 7% of a home, this could run into serious money. A home that sells for $1 million could result in fees and commissions exceeding $70,000.
Figuring out cost of living expenses
A couple’s cost of living expenses could skyrocket in the period leading up to a divorce. One party might need to move out and pay for an interim living space, a situation that could last for several months in a contested divorce. One or both parties could also face reduced income due to moving to a different location.
Even wealthy couples will need to pay attention to the finances of divorce. Smart financial preparations can soften the blow and reduce surprises.