The Cost of Breaking Up

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Getting ready for a new life of singledom? Then you're probably in the midst of setting things on the right track. One thing that tends to get pushed back at these times is our finances. So we asked finance expert Rubina to break down how different expenses go up or go down after a breakup.

The Cost of Breaking Up
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Housing: Goes Up

While you now get the entire place to yourself you're also bearing the entire rent or mortgage of your home. Even if it's a smaller place, the cost can sometimes be more than 50 per cent of what your earlier home costed you.

Transportation: Goes Down

Transportation costs go down by as much as 85 per cent. If you lived in a large suburban home when you were married, switching your life to a smaller place close to where you work can dramatically reduce your costs. Not everyone who breaks up moves away, but if this is the case, making choices that will cut down on how much you drive could save you a lot of money.

Entertainment: Goes Up

Your entertainment costs could go up by three times as much when you're single than when you're married. Data shows single people spend a disproportionate amount of money going out for dinner, after work drinks and movies when compared to their married peers! 

Legal Fees: Goes Up

Your legal fees could soar from $0 to $20,000. Getting divorced is expensive. If it's a contested divorce it can cost each person up to $20,000 in legal fees, which includes attorney's fees, court costs, refinancing real estate etc. Also, watch out for more legal costs associated with child support and custody down the road. 

Food: Goes Down

Your food costs could go down by nearly 50 per cent. We tend to be more frugal and efficient in creating meals when we are on our own. A family of four could spend $10,000 annually on their grocery bill. You're more likely to have big, elaborate meals every night as a family than when you're single.

 

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