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Divorce · Expenses · Financial Planning · Personal Finance
The article, authored by Dentons and featuring attorney Tyler Coe, highlights that individuals frequently underestimate the true financial costs of living independently post-divorce, emphasizing the critical role of a detailed financial affidavit in revealing forgotten expenses that can total thousands annually.
Divorce fundamentally alters personal finances, often leading to unexpected expenses that many do not anticipate until it is too late. Iowa law generally requires each divorce party to file a financial affidavit detailing income, assets, debts, and crucial monthly expenses for both parties.
Attorney Tyler Coe advises meticulously reviewing bank and credit card statements to accurately capture all expenditures, including infrequent ones like oil changes, by annualizing and then monthly allocating them. Forgotten costs such as clothes, toiletries, medicine, and subscriptions, which can accumulate to thousands of dollars per year, are frequently overlooked.
The analysis underscores the necessity of sufficient post-divorce income, spousal support, or child support for comfortable living, urging individuals to seek attorneys proficient in lifestyle expense assessment to understand their new financial reality.