There are some typical expenses in divorce that people understand like legal fees, mediation fees, court filing fees, and therapy. However, there are some additional expenses that people should think about as they are making decisions about asset division, budgeting divorce expenses and post-divorce budgeting.
- Cost of Valuing an Asset:
- Appraisal Fees: If a couple cannot agree on the value of an asset then an appraiser is hired. Residential appraisers charge $300-700 on average and in cases that are not settled in a timely manner the reports may need to be updated resulting in multiple charges for this.
- Home Inspection Fees: The party interested in buying out the other spouse should treat the property as if they are buying it on the open market and do a home inspection. Residential home inspectors charge $350-600 on average.
- Other Inspections: Depending on where the property is located it may need termite or roof inspections if they haven’t been done in a while.
- Re-financing Costs: If one party is going to buy the other out of any real property (e.g. house or business) and both names are on the loan there will be expenses incurred to refinance. To estimate these expenses speak to a lender and have them provide a closing cost estimate for your specific circumstances. These costs can range from a few thousand dollars to over $10,000.
- Moving and Furniture Expenses: Furnishing even a small space can be pricey, as well as needing to hire movers or rent a truck to move. Remember these expenses in the budget.
- Vocational Assessments: These come into play typically when one spouse has been out of the workforce for an extended period of time and are done by a specially trained individual. The cost for this assessment is typically $2500.
- Other Divorce Professionals: People require different professionals to support them and/or provide specialized analyses. Some examples are: Certified Divorce Financial Analysts, Divorce Coaches, Retirement Valuation specialists, and QDRO preparation specialists.
- Estate Planning Expenses: People should update trust and will documents as a part of the divorce work. The cost of this will depend on where a person lives, complexity of their estate, experience of the attorney and pricing methodology of the attorney.
- Insurance Rates: The cost of home/property/auto insurance can change as you change your status from married to single. Check with your insurance agent for estimates. Additionally, if someone can no longer stay on the health insurance of their spouse due to divorce they should find out the cost of either Cobra or a plan on the open market for their post-divorce budget.
Remember as you are adjusting to the expenses that divorce brings with it, you should plan for the post-divorce adjustments as well.
