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Why you need a post-divorce budget

On Behalf of | Apr 16, 2024 | Family Law

If you’re getting divorced, it’s wise to create a budget. Your post-divorce budget could be much different than the budget you enjoyed during your marriage. Your standard of living is going to change and may go down.

One of the major reasons for this is that you and your former spouse are now operating two households. You have two mortgage payments, you both have to pay for utilities, you both have to pay property taxes and much more. Rather than sharing those costs with your spouse, as you did during the marriage, they are now your own responsibilities exclusively.

How should you start your budget?

When you start making this budget, it’s a good idea to look at the things that you must have to maintain stability for your children. This will tell you what necessary payments you can’t afford to miss. Examples include some of those noted above, like rent or mortgage payments, bills from the electrical company and taxes. You also need to be able to provide medical care, food, clothing and transportation.

You may find as you create this budget that you can no longer maintain the exact lifestyle you had grown accustomed to. Dropping down to one income is just too big of a change, even if you’re getting alimony payments or child support payments. But because you started that budget with the things that you have to pay for, it’s easier to go through all of the non-necessary costs to see what you can cut or adjust.

The financial side of divorce

As you can see, your financial situation may be very complicated after your divorce. It’s quite important to consider all of your options while working through this process.