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What additional expenses should you consider in divorce?

On Behalf of | Nov 21, 2022 | High Net-Worth Divorce

When people go into a divorce, many do not understand exactly how much money the entire process will end up costing.

Attorney fees, court costs and more can stack up quickly. On top of that, any couple with a high net worth should also consider a few additional expenses that are unique to certain wealth brackets.

Expenses tied to selling the home

U.S. News discusses the extra expenses to consider in divorce. First, expenses often come when a couple decides to sell their family home. Unfortunately, most houses are not market-ready as-is, and most couples do not anticipate getting a divorce. This means the potential of putting a lot of money into the home to make sure it is ready to sell, all in a relatively quick span of time.

The sale of any property also comes along with a lot of fees even if it is entirely market-ready, due to realtor commissions and so on. Commissions can be up to 7 percent of the entire sales amount, which is a pretty striking amount of money to pay.

An increase in cost of living

In the period leading up to the divorce itself, it is also possible for each individual person’s cost of living to rise. For example, one person may choose to move out of the shared home and will have to pay for their own living accommodations. Reduced income is also a major hurdle to cross.

With these combined issues, a couple could easily end up getting into financial trouble on their way to the big split.

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