As a high net-worth individual, you’ve worked hard to earn and protect your finances. However, leaving your spouse can impact your finances, as there are hidden divorce costs many are unaware of. If you’re going through a separation, Los Angeles high net worth divorce attorneys can help protect your assets from falling victim to the hidden expenses associated with the dissolution of marriage. Keep reading to learn more about the hidden costs of divorce you may not be aware of to better prepare yourself and your finances for the dissolution of marriage.
What Are the Most Common Hidden Divorce Costs?
One of the most overlooked costs associated with divorce is the burden of one spouse to move out of the shared apartment or home. This can be unfortunate as many couples share a home together, and leaving this space can be emotionally and financially stressful. It’s no secret that apartments and houses in California are not cheap, so spending money on a new home while furnishing the space can cause additional stress. You may want to move into a different property, but it’s important to note that California distributes all marital assets equally between spouses, so a property may be awarded to your spouse.
Another aspect you may fail to take into consideration when preparing for divorce is that starting your own accounts and separating shared plans can be pricey. For example, if you are on your spouse’s health insurance plan, it can cause significant stress to start your own. While you can likely apply for a work-sponsored insurance plan, you’ll begin noticing monthly deductions from your income to cover the costs, and many of your established providers may not be covered under this new plan. This means you’ll either have to pay higher co-pays out of pocket to continue seeing your providers or switch to those covered under your plan.
In the same vein, it can be expensive to refinance loans you and your spouse co-signed. Often, if both names are on the title, you’ll have to pay off the original amount, have your spouse sign over the title, and apply for a second loan. Not only can buying out a loan cost you, but it can also increase your monthly payments and the length at which you’ll repay the loan.
How Can an Attorney Help?
However, the most financially stressful aspect of divorce can be found in an incompetent attorney. When working with a lawyer who isn’t familiar with or comfortable handling high net-worth divorce cases, it can impact the rest of your life in terms of unfair alimony payments and relinquishing assets. Though California is a community property state, some assets are more straightforward to liquidate than others, increasing their value in a divorce.
Working with an experienced attorney can help save you money in the long run, as you won’t lose valuable assets that can impact your finances for decades to come. At the Zitser Family Law Group, we understand how hard you’ve worked to earn your assets. While we may not be able to get your new apartment paid for, we can help ensure that you don’t have to sacrifice assets that are important to you. Contact us today to learn more about how we can help you.