Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

5 ways divorce could affect your finances

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Stuart Pfeifer
Los Angeles Times
Published:
Divorce can hurt the pocketbook in ways that some people don't expect.
Lost income, child support, spousal support all hurt. But there are other ways that divorce affects finances, said Samantha Fraelich, vice president of Bernard R. Wolfe & Associates, a Chevy Chase, Md., wealth management firm. Here are five of them:
Legal expenses
Be prepared to spend thousands of dollars on legal expenses, even if the divorce is amicable. If it's contested, expect to spend much more.
Child-care expense
Without another parent in the household, divorced parents often need to pay more for child care than they expected.
Taxes
Going from married, filing jointly, to single filing status can significantly increase taxes.
Retirement planning
Without two people contributing, retirement planning expenses can increase after divorce. Pension, IRA and 401(k) distributions will often be significantly lower too. "It is usually helpful to get a retirement plan run by a professional before you actually sign divorce paperwork," Fraelich said.
Insurance
Because married people expect their spouses to care for them as they age, they may not have thought about long-term care insurance. After a divorce, it may be important for people to purchase those policies.
"Most people don't realize the depths of what divorce can do when it comes to their finances," Fraelich said. "It is usually a matter of much more than a loss of salary or income."
Story tags » Economy, Business & Finance

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup