Relocating, for whatever reason, is complicated enough as it is. However, the steps you take and the choices you make, when moving during a divorce, can impact your financial situation. Therefore, judicious planning for this all-important move is essential.
Things to Plan for When Moving
Financial Preparedness
Logically, this would be your first priority. When leaving, ensure that you are stable financially to avoid difficulties in the future. Plan ahead and have savings/cash available so that you can handle the first and last month’s rent plus security deposit. With the help of an expert divorce financial adviser and your family law attorney, it is possible to obtain temporary support that can help mitigate financial stress.
Budget
Part of wise preparation is having a budget that would be the blueprint, so to speak, of your future. Having a plan, and more importantly, sticking to this plan ensures that your money is spent wisely. Knowing how much income you have and keeping your expenses within that income is vital to your financial success.
When relocating, it is important to take into consideration several factors that would affect your budget.
Here are just some of them:
Your future location. The type of climate in the place you will be settling in will have an effect on the utility bills you will have to pay. A desert location would mean you would have to pay more for a/c bills while a colder climate would mean higher heating bills during the winter months.
Utility Companies. Initial hookups and service activation to utilities and other service companies need to be factored in when moving. And if you do not have a good payment history record, companies may require a deposit.
Time of Year You Move. Although you don’t always have a lot of control over this, even the season when you consider your move will have an effect on the cost of moving. For instance, you may have to pay more to rent a truck or hire movers during the warm summer months because it is a peak season for moving.
The Distance You Are Moving To. The farther you move, the more expenses there are. On top of the moving costs, you need to consider moving logistics -- this includes gas, lodging and meals en route to your new location.
Possessions You Have. More specifically, how much you have. The amount you pay is proportional to the number of things you need to move. Professional movers charge by weight and size. And even if you choose to move your possessions yourself, you would need a bigger and hence, more expensive truck.
Moving into an Apartment. If you are moving into an apartment, there are specific costs associated with it, including:
Apartment application fees
Security deposit
Pet deposit (when applicable)
First month’s rent
Utility deposit (if necessary)
Shared Custody
In the event that you have a shared custody situation, you would need to take into consideration where your children will stay when they are with you. You may need to pay for an extra room that will not be in use for half of the time.
Change of Address
This is an oftentimes overlooked detail when moving. Companies that you should include in the “to contact” list are: your bank, Insurance company for car, life and health, your investment advisor, credit card companies, bank, DMV, state tax board, the IRS and other companies or persons you get statements from or have corresponded with over the past year.
Take Control of Your Future
Whether relocating after a divorce is by choice or not, Kimberly Surber will help you plan for your move while keeping your financial well-being in mind. As a Certified Divorce Financial Analyst, she can guide you in your financial decisions that will help transition you to your new life in your new location successfully.
Both Kimberly and Leslie provide step-by-step guidance on matters related to divorce. With a wide range of experience and expertise related to divorce issues, our team will simplify the process and provide much-needed clarity in areas such as long-term tax consequences, asset, and debt analysis, dividing pension plans, continued health care coverage, stock option elections, protecting support with life insurance, and much more.
This information is not intended to be a substitute for seeking legal advice from an attorney. For legal or tax advice please seek the services of a qualified attorney and/or qualified tax professional.