Don't Avoid Creating a Post-Divorce Budget

Don't Disregard Creating a future Budget WHile going through divorce

Soon to be ex-spouses often don’t consider personal budgets when getting a divorce. After years of marriage and cohabitation, a spouse may not fully comprehend the reality of living on one income, and that goes double for the spouse who’ll be paying alimony and child support.

That’s why it’s so important to create a new household budget for divorcing spouses.

Start by creating a monthly spending plan that takes key personal financial expenses into account, like housing, utilities, cable and phone, long-term savings childcare, and alimony and child support, if applicable. Make sure your budget is based in reality – you’re likely going to have a lower household income living on your own.

A good mortgage broker can help you plan what you can afford when looking for buying or renting a new home, taking into consideration any future alimony or child support you may receive.

Being prepared with a good household budget for the single life upfront will help you set a baseline for your current and future living expenses, and reduce the need for you to live hand to mouth, borrow money, or take on a side job to make ends meet.