When you go through a divorce, one of the major changes will be your financial situation. If you and your spouse both work, you’ll lose one source of income following your divorce in most cases. If you earn less, there may be an opportunity to seek support from your then ex-spouse, but it’s smart to budget without that income to make sure you understand what you need with or without their support.
What can you do to build a better post-divorce budget? Here are four tips to help.
- Know your income and expenses
To start with, you should know your income and expenses, so that you are aware of what kind of financial position you’re in. This budget will show where there are gaps and if you should pursue spousal support.
- Start looking at the value of your assets
The next thing to do is to start looking at the value of the assets you’ll keep in your name. Are they liquid assets that you can sell off if you need to? Are they sentimental but not worth much? Property division decisions can make a difference in your overall budget and security.
- Account for the unexpected
Although it is important to have a detailed budget that is structured to show your necessary expenses and honest income, you should also include a budget for unexpected situations. You want to have some flexibility in your budget for doctor’s visits or vehicle maintenance.
- Don’t forget to calculate debts
Finally, don’t forget to calculate debts. You should know how much debt you’ll take on after the divorce and how long it will take to pay it off. In a best-case scenario, the divorce would be a wash that lets you walk away without debt thanks to obtaining liquid assets or support to pay them off.
These are four tips to help you build your post-divorce budget and stay on track financially. This can be a difficult topic to work on, but if you are patient and work through your budget carefully, you’ll be able to see where you need more support and if you can move forward with or without support from your ex.