Welcome back! We’re discussing the issue of money in divorce, which you will probably agree is a big deal. However, money doesn’t just play a role in causing divorce, it also tends to complicate the divorce process itself. Why? Because assets and debts need to be divided when a couple ends their marriage, and fights about money and how it’s spent (or where it’s potentially hidden) can muddy the waters. So here are the last two items on our list of the four most important money tips for divorce:
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Creating a budget is critical!
In many cases, when you go from one household to two, you you’re going from having two people contributing financially, to having only one person contributing. There’s far less to go around when one person is covering all the bills on their own, so you may have to make some lifestyle changes to accommodate a tighter budget and less cash flow.
You can start by making a basic list of your monthly expenses, and then dividing them into two categories – necessary (car payment, rent, groceries) and unnecessary (satellite TV, gym membership). Although you may not think any of your lifestyle costs are ‘unnecessary’, you might need to find ways to scale back your monthly costs. Reading a book from the library is a lot cheaper than watching pay per view movies, and running in the park is more cost effective than running on a treadmill at the gym.
Figuring out how much money you need to live, and then devising a way to live within your means is crucial to your success. The more you spend money you don’t have, the harder it gets to dig yourself out on the other side. So be sure to set limits for yourself, and then stick to them, no matter what!
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Surround yourself with the right support
Financial changes are sometimes hard to make, so the best thing you can do during this transition period in life is to surround yourself with a support system. Make sure you have a good attorney on your side. If you need a CPA. a divorce coach, or a mediator, talk to your attorney and get recommendations for affordable and reliable supports.
Also, discuss your situation with close friends and family. Explain to your kids that due to changes in your finances, you’re going to scale back on spending. So less eating out, fewer vacations and family trips, and no unnecessary toys and games. Let your friends know that you can’t go out for drinks, or to the movies, but you can share a bottle of wine at home, or watch netflix together.
You’re in a transitory period in life. Things are changing, and you’re going to have to adapt in order to survive and come out on top. So take a deep breath. You CAN do this!
Do you need help preparing for your divorce?
Divorce can be a complex process, and having the right help from an expert with years of experience can make all the difference. So if you or a loved one are considering divorce in Michigan, call 866 766 5245 today and discuss your situation with one of our experienced and skilled family law attorneys. We’ve helped countless people achieve successful outcomes in their divorces over the years, and we can help you too!