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Plan for your finances after divorce

On Behalf of | Sep 6, 2022 | Divorce |

One of the challenges of divorce is having to pay for your lifestyle on only your income. This is a significant change for someone who was used to living in a two-income household. Setting up a budget can help to make the adjustment a bit easier. 

There are essential points that you need to consider when you’re creating the budget. It’s usually best to overestimate your expenses, so you know your budget will work seamlessly. 

Write out your expenses and income

Your expenses should always be less than your income. This ensures that you will be able to pay for everything on your own. It can also inform your strategy during your divorce when it comes to the division of assets.

If any of the assets that you have come with additional expenses, such as a home that needs insurance, taxes, mortgage payments or upkeep, be sure to factor those into the budget before you try to fight for that specific asset in your divorce. 

Trim expenses where you can

If the budget you’re foreseeing is tight, you may have to trim some expenses – or you may need to increase your income. 

This can mean asking for temporary support so that you can get retraining or find a job, particularly if you’ve been a stay-at-home parent for a while. Or, this could mean asking for more liquid assets so that you can have a little financial cushion as your look for a suitable job.

The property division settlement you get from your divorce may give you a good foundation for your new life. As you’re trying to work this out with your ex, consider how each option will affect you as you live on your income. Working with someone who understands your goals can help you to walk away with the settlement that best suits your needs.