The Hidden Price of Moving On: Why the First Year After Divorce Costs Americans $23,880

Most people expect divorce to be emotionally difficult. What they don’t expect is just how expensive the first year of rebuilding can be. According to new analysis from Dellino Family Law Group, Americans spend an average of $23,880 in the year after divorce, in addition to roughly $11,300 in legal fees.

These expenses aren’t luxuries — they’re the combined cost of reorganising a life: securing new housing, adjusting childcare, replacing health insurance, and re-entering a social world that may have been paused for years.

For many, this financial reset becomes as challenging as the divorce itself.

Dating After Divorce: A Cost That Quietly Adds Up

A surprising driver of post-divorce spending is the return to dating. Most newly single adults underestimate how quickly these costs accumulate.

On average:

• People spend $213 per month on dating-related expenses

• Around a third of singles use apps, and many pay for features

• App upgrades range from $18–$19 a month, with premium plans like Hinge+ costing $100 per six months and The League charging up to $400 per quarter

There’s also a gender difference: men spend more on in-person dates (nearly $100 a month) while women spend less than half that amount. But grooming and personal upkeep — haircuts, beauty appointments, skincare — stay almost equal for both.

This means that even before a new relationship forms, “getting back out there” becomes a recurring line item that affects the monthly budget.

The Reinvention Budget: Clothes, Confidence, and Identity

Whether the goal is rebuilding confidence, updating a professional wardrobe, or simply feeling like yourself again, most people invest in new clothing soon after divorce. The analysis places this cost between $250 and $600 in Year One.

It’s not just fashion — it’s part of re-establishing identity. And for many, this becomes a repeated expense as they settle into new routines or social circles.

Therapy and Emotional Support: A Necessary Investment

Post-divorce life comes with emotional turbulence — and therapy is often essential. Co-parenting sessions, individual counselling, and transitional support typically cost $1,200 to $3,000 in the first year.

These aren’t optional expenses for most families; they are stabilising tools that smooth the shift into single-parenting, dating, and new household roles.

Childcare: A Long-Term Financial Anchor

For single parents, childcare becomes one of the largest recurring costs. National averages land at $13,128 per year, but the more notable trend is that these costs often increase before they decrease.

The study shows:

• Years 1–3 see higher childcare pressure due to school transitions and aftercare

• Relief is minimal until children age out of structured programs

• Childcare remains a dominant share of the post-divorce budget

This strain can delay savings, stall credit recovery, and limit flexibility around work.

Health Coverage Shock: When COBRA Doubles the Bill

Healthcare is one of the most misunderstood parts of post-divorce life. Losing access to a spouse’s employer plan means many individuals turn to COBRA — at a staggering 102% of their previous premium.

While marketplace plans eventually bring costs down by 8–15%, switching mid-year often resets deductibles. Without planning, families can face an unexpected jump in medical spending even before making their first co-parenting payment.

Housing and Moving: The Most Immediate Expense

Once the divorce is final, one or both people typically move. These costs vary dramatically — from $1,500 for a local move to $10,000 for long-distance — but the more lasting change is the new cost of living.

The study found that most households end up paying 3–6% more for rent in their new home than they paid as a married couple. That higher baseline persists for years, limiting the ability to save or rebuild emergency funds.

Why Legal Fees Are Only the Beginning

Attorney fees get the most attention, but the true cost of rebuilding sits in the everyday adjustments that follow:

• A higher rent baseline

• New insurance premiums

• Childcare schedules

• Therapy cycles

• Dating and social costs

• Clothing and personal upkeep

• The slow climb back to financial stability

When combined, these elements create the $23,880 Year-One Restart Budget, which is often as impactful as the divorce decree itself.

Attorney Insight: The Mistake Most Clients Make

Dellino Family Law Group notes that clients often budget only for legal fees and overlook the lifestyle transition that follows.

“The people who struggle most after divorce are the ones who plan for the court process but not for the rebuild. The first-year restart costs — housing, childcare, COBRA, therapy, dating, clothing — hit faster than people expect. Clients who plan for these from the start tend to reach stability sooner and avoid issues like credit damage or early-retirement withdrawals.”

Planning Ahead Makes the Transition Far Easier

Because divorce filings spike in January and again in late summer, the planning window is short. The study found that strategic timing — choosing when to move, when to switch health plans, how to structure childcare, and when to re-enter dating — can dramatically reduce financial strain over the next five years.

With careful budgeting, the Year-One Restart Budget becomes manageable instead of overwhelming. Without it, the cost of “moving on” can linger far longer than the emotional fallout.