How to Make a Divorce Budget
If you’re adjusting to a single-income household, you’re not alone. Many divorcing Canadians feel the pinch when they split from their spouses, and if you’re one of them, it can’t hurt to set up a divorce budget. In fact, your Aurora divorce lawyer might even advise you to do so… but where do you start?
Setting Up a Divorce Budget
A divorce budget is only slightly different from any other budget. The first thing you’ll need to do is gather information on your expenses. Don’t forget:
- ♦ Rent or mortgage payments if you’re no longer living with your spouse
- ♦ Utilities and telephone bills
- ♦ Food (both groceries and dining out)
- ♦ Vehicle payments, fuel and other automobile expenses
- ♦ Credit payments and other debts or obligations
- ♦ Lawyer’s fees and divorce-related expenses
If you have other expenses that won’t change, it’s important to include them as well. Once you’ve determined all of your fixed expenses, it’s time to move on to expenses that you can cut out if necessary. Examples of varying expenses include club memberships, entertainment, charitable contributions and satellite television.
Total all of your expenses; then, work on your income. It’s important that you don’t count child support or spousal support unless you and your Aurora divorce lawyer have a signed separation agreement that indicates the amount(s) you will receive.
Subtract your expenses from your income. In a perfect world, you wouldn’t end up with a negative number. However, if you do, it’s time to start trimming the unnecessary expenses. Budgeting is difficult, but it’s even harder when you’re going through a divorce and have to deal with big changes in your financial situation.
Keeping Your Lawyer Informed
As you work out your budget, make sure that you keep your lawyer informed about where you stand financially. He or she may be able to file paperwork on your behalf so that you are awarded the appropriate amount of spousal support