How can creating a budget help me survive a divorce?
A divorce will impact nearly every aspect of your life, including your finances. During a divorce, your marital assets will be split and the joint income level you once shared will decrease to a single income. Fortunately, there are some steps you can take that will help you to preserve your assets during and after a divorce. Our Midland, Texas divorce lawyers discuss some steps you can take to emerge from a divorce financially intact below.
Create a New Budget
You and your spouse likely had a family budget during the marriage, but that budget will likely need significant alteration after your divorce. As you prepare for a divorce, take the time to develop a post-divorce budget that you can stick to both during and after the divorce. First figure out what your needs will be post-divorce. For instance, you may need to find a new place to live and a new car, depending on how your assets are split.
You will need to consider the costs of healthcare now that you are on your own, along with everyday expenses like groceries. Calculate your income once the divorce is finalized and determine what funds you will have left over after your basic living expenses are covered. Once you have developed a solid budget, start to consider how you can work in saving for retirement or college.
Manage Your Divorce Costs
A divorce will cost both you and your spouse, and you must plan for this expense. You will need to cover the costs of a divorce attorney, court expenses, and potentially a financial planner. Determine how you can pay for the expense of divorce, whether this might involve liquidating assets or starting to save more funds from your salary.
Consider Your Debts
If you and your spouse have marital debts, you will ideally want to deal with these debts before the divorce is finalized. If you continue to carry the debt after the divorce, it may be harder to make necessary repayments with your lowered income. When the debts cannot be paid off before the divorce, you will want to have your attorney advocate on your behalf for the fair division of the debts.