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5 possible financial effects of divorce

On Behalf of | Sep 2, 2021 | Divorce

They say hindsight is 20/20, and in matters of divorce, this saying is 100% accurate. If Honolulu residents knew about the possible financial effects of divorce, they could plan and prepare for the worst.

Unfortunately, few people have a complete picture of what could happen after divorce in terms of their finances. Without this knowledge, most feel blindsided when they realize they can no longer live the way they did before divorcing.

Real divorces come with real financial problems

When your favorite film or TV characters get a divorce, they complain about money but somehow continue living the same lifestyle. They can afford luxury purchases and expensive vacations, for example. In a real divorce, the following financial consequences often arise:

  • Increased taxes. Filing your income tax return as a single person could double your tax burden.
  • Increased expenses. Nearly everything costs more for single individuals, from auto insurance policies to cell phone plans.
  • Retirement plan implications. Getting a divorce can devastate your and your spouse’s retirement plan, leaving you unprepared for life as a senior citizen.
  • Starting over expenses. It is challenging for newly single people to afford the cost of a new home or apartment and the items that go into a home (dishes, towels, etc.).
  • Unforeseen financial challenges. When unexpected expenses arise in a marriage, you have two people working to remedy the issue. On your own, you have only yourself to rely on when such challenges occur.

Now that you understand the financial implications of your divorce, you can prepare to address these issues ahead of time. Learning more about getting a divorce in Hawaii can also help you prepare for a stable future.