Divorce inspires a host of challenges that some people don’t think too much about before they’re forced to confront them. One of these is the financial strain that can occur in the wake of a split.
As soon as you realize you’re going to divorce, you’ll need to take a deep look at your financial state. This can provide you with a clear idea of what you can and can’t afford as you navigate the property division process.
Set your budget based on only your income
Your post-divorce budget should be based solely on your income. Even if you receive spousal or child support, you never know if those will be late. By considering only your own income, you’ll have a little extra cushion if you do receive spousal or child support.
Include every expense, regardless of amount
Even expenses you have should be included in the budget. Start with essentials, such as the rent or mortgage, utilities, insurance, vehicle payments, food and similar expenses. Once you have those in the budget, you can start adding in others.
Plan for one-time expenses
One-time expenses, such as attorney fees and moving expenses, can add up to a considerable amount. Building these into your budget may help you to feel less financial stress as you handle these.
Keep track of your spending
Once you have a base budget written out, you’ll need to keep track of your spending. This lets you know where you can adjust your spending to meet your needs. There’s a chance that you may have missed some expenses when you created your budget.
Save for emergencies and retirement
Once you get the budget solidified, you should work toward saving for an emergency fund and retirement. Being able to set your plan for the future and execute it may help to make everything a bit easier as you adjust to life after the divorce.
Having the assistance of a legal representative may be beneficial by helping you to think about the logical side of the options available to you as you navigate the divorce process. This is especially important during the property division process because every decision you make can have an impact on your future.
