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Handling a Tighter Budget After Divorce

Posted on in Divorce

Handling a Tighter Budget After DivorceOne of the unfortunate consequences of divorce is that neither party will be as financially strong apart as they were together. A divorce will reduce the possessions you already have and the available income you will have moving forward. Child support and spousal maintenance can help recover some of the lost income. However, a court may not intend for it to replicate your marriage income. If you are paying your spouse, the support payments are another drain on your income. Divorcees often must live on a tighter budget, which could be a difficult adjustment for yourself and your children.

Your Expectations

You might not think of yourself as living a life of luxury, but trying to create a budget after your divorce may give you a different perspective. Expenses can escalate either in the quantity of purchases you make or the higher quality of the items or services you purchase. There are several ways you can cut back on expenses to fit your new budget. You can start by determining what are necessary living expenses and what are luxuries. You do not have to give up all of your luxury expenses, but you should understand that there is a price to keeping each one. After you calculate the cost of your accustomed lifestyle, you can determine:

  • What expenses you are willing to give up;
  • Whether there are cheaper ways to purchase items or services you normally use; and
  • Whether there are any luxury items you would be willing to sell.

Your Children’s Reactions

Your children may be less understanding of your need to cut back on expenses. They did not want the divorce to start with, and now they feel they are being further punished for your decision. Part of child support is working with your former spouse to determine your children’s needs and how to pay for them. Even with your combined incomes, you may have less income available to pay for child expenses because you are separately paying for other expenses you once shared. You may be able to continue the same expenditures on your children, but it will require you to sacrifice more of the expenditures you make for yourself. Alternatively, you could use your new financial circumstances to teach your children about budgeting. If the child is mature enough, he or she could help you think of ways to cut back on expenses.

Post-Divorce Budgeting

It can be frustrating if your former spouse appears to be maintaining the same lifestyle as during your marriage while you are financially struggling. Your spouse may be living beyond his or her means, or he or she may have kept more assets from the marriage than you realized. A McHenry County divorce attorney at Botto Gilbert Lancaster, PC, can negotiate an equitable division of property during your divorce. To schedule a free consultation, call 815-338-3838.

Source:

http://www.divorcemag.com/blog/money-financial-financial-impact-of-divorce

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