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How to budget during divorce

On Behalf of | Dec 28, 2018 | Uncategorized

Divorce rates have substantially fallen in recent years. The Guardian reported that in 2018, the United States divorce rate was the lowest it has been in 45 years, and with any luck, that rate will continue to drop in years to come. 

For now, many people in Wisconsin still contend with divorce. It is a difficult time that can stretch for months or even years, depending on how much you and your former spouse can agree upon. During this time, you need to budget accordingly so you can have a healthy post-divorce life

Refrain from making big financial decisions at the moment

Divorce is a time to cut back on certain expenses rather than add more on. You should wait until alimony and child support have finalized before you buy a new house or car. You should also refrain from making changes to your insurance policies and retirement accounts while still in divorce court. You can finalize these documents after. If you do make changes to these accounts, the judge could award your spouse more money. 

Track current expenses and anticipate future ones

Before pursuing a divorce, accumulate your savings and checking account information, credit card statements, pay stubs, investment account statements and other pertinent documents. This allows you to see where most of your money goes. If you live beyond your means, then you need to see where you can cut back. For the immediate future, you need to see how you will pay for attorney fees and additional related expenses for the divorce. 

Know when you need assistance

You may need more than a lawyer as part of your divorce team. Many people need to hire an accountant during this time to help them stay above water, too. It is vital to know when you cannot budget on your own. An accountant, or anyone who understands finances, can be a tremendous help during this time.