To help transition into your post-divorce life, it can be beneficial to set up a budget. After all, you’re going to experience some financial changes. Many people see their standard of living decline as their income drops after a divorce. But you can adjust your budget to help things go smoothly.
Obviously, everyone’s budget is going to be different, but here are a few things to keep in mind while drafting yours.
It feels like many costs increase
First of all, you may feel like life is more expensive than it was before the divorce simply because you are no longer sharing certain costs. For example, your rent or mortgage payment will now take up a bigger percentage of your overall budget.
Divorce can create new costs
Your budget may also have to account for costs that simply didn’t exist during your marriage. For instance, maybe you have a child and your ex used to watch the child while you were at work. Now that you’re divorced, you may have to pay for childcare when you have custody during work hours.
Start with the bills that are unavoidable
When drafting your budget, start with things that you can’t avoid paying, for example rent, utilities, car payments, groceries, and healthcare. This will give you a sense of how affordable your life is at a basic level. Then you can begin to add in additional items that you can afford.
It’s clear that there are going to be financial changes after a divorce, which is part of the reason why it’s so important to know about all of your rights during property division.