You’ve got a rundown of the expenses involved in getting a divorce, but do you have a financial plan for your life after divorce? If you fail to plan for the next chapter in your life, it could easily become a chapter mired in frustration, anxiety, angst, and many more negative emotions. Learn how to budget for your post-divorce life.
List Your Expenses
Write down all the expenses you’ll be responsible for after your divorce is finalized. Besides financial obligations that carry over from your marriage, such as your car note or credit card payment, account for child support and alimony. Bear in mind that there could be some new expenses you didn’t account for, such as your new tax bracket now that you’re no longer married.
List Your Income
Once you’re done figuring out what money you’ve got going out, write down the money you have coming in. Rather than paying alimony or child support, you may be on the receiving end of it. There could also be investments that supply you with a new source of income.
Once you’re done noting your income and expenses, tally everything up to ensure you don’t have more money going out than you do coming in. This is preferable to overdrawing or maxing out a credit card to cover your post-divorce expenses, which can come with nasty fees. Determine whether you need a source of supplemental income, how you’ll make that income, and what that extra income will go toward.
Keep a Close Watch on Your Spending
Even with a budget, you still need to keep track of how you spend every penny as you move through your divorce. This is a good idea in case there are expenses or sources of income you forgot to account for. As you track the flow of money, note areas where you can tighten your purse strings, or eliminate unnecessary spending altogether.
Don’t Be Afraid To Adjust Your Budget
Once you’ve created your post-divorce budget, know that it’s okay for you to adjust it as you see fit. As you settle into your new life, you’ll have a better idea of how you realistically spend and make money, which could be different from how you think you make and spend money. Also, there is the fact that your income or expenses may change later on, which leaves you with no choice but to change your budget.
Save As Much Money As You Can
Throughout all your spending, earning, and tracking, devote some time to focus on building your savings. It makes no difference if you’re single, divorced, or separated, you owe it to yourself to have some money put back into savings. There’s simply no telling what’s coming down the line, but that something may come with a massive price tag. Knowing you have money socked away can provide you with a great deal of relief in your day-to-day life, so do what you can to make the most of this fact.
Talk to a Legal Professional
To better refine your budget, it’s a good idea to talk to a legal professional like those at Tully Rinckey legal offices. Lawyers who have a background in working divorce cases have a better grasp of the expenses involved in the beginning, middle, and end of a divorce. Such insight can help you build a better budget and give you a better idea of what is likely coming up on the financial road ahead.
Talk to a Financial Professional
Besides talking to someone from Tully Rinckey, you should also talk with a financial advisor who has helped people going through a divorce. You cannot have too many sources of information in times like these.
Budgeting is always vital, but especially so during times of great transition. See how these tips work for you in life after divorce.
