Here are some things to consider about how divorce will affect your finances once you are on your own.
- Expect higher costs for some single-person items, such as travel and housing. You will now have to pay the entire cost on your own for the hotel room or home that used to accommodate two people. Travel will now cost you approximately 55 – 70% of what a couple would pay.
- Your nest egg will need to be more as a single. If the two of you would have been OK with $1,000,000, you will now need $700,000 to enjoy the same life style on your own.
- Owning a home as a single person means you will probably pay less in utilities, but property taxes, home insurance and condo fees are the same whether you or single or married.
- If you pay child or spousal support you may have to work longer before you can retire, and cut expenses.
- Your retirement savings may be affected if you have to take an early withdrawal in order to pay off an ex in your divorce settlement.
If you’re still considering divorce and there’s any hope for reconciliation, maybe these factors will help you decide to try and make your marriage work.
If you’re already committed to the divorce, just know that although it can be a financially difficult time, it doesn’t have to be a dead end for you. You can look at it as a time to reevaluate your goals.