Money caused 21 percent of divorces in the United States, a 2017 study performed by MagnifyMoney indicates. Perhaps more shocking is that the more an individual in this study earned, the more likely they were to list money as the reason for their divorce. All of this is to say that financial concerns weigh heavy on the heads of married couples everywhere. This insecurity is only heightened when divorce enters the picture. According to the same study, 59 percent of respondents went into debt thanks to their divorce. The family law team from Brian D. Perskin & Associates is here to help. Learn how to budget for a divorce and how to maintain a healthy post-divorce budget below.
How to Budget for a Divorce
It may seem impossible to learn how to budget for a divorce. There are likely other things on your mind, including concerns about your children, considerations about moving, and much more. Thankfully, there are some simple steps you can take today to budget for a divorce.
Gather Financial Paperwork
The first step to preparing a divorce budget is to gather all of your financial paperwork. This includes hardcopy paperwork and electronic statements. It also includes any and all joint account financial information. Documents you should put together include:
- Bank Statements – checking and savings accounts
- Credit Card Statements
- Investment Accounts – stocks, equities, bonds, retirement accounts (401K, IRA, Roth IRA, etc.)
- Debt Information – including secured debt (mortgage, home equity line of credit, etc.) and unsecured debt (credit card debt, medical debt, etc.)
You will also want to pay attention to your recent pay stubs, tax returns, and information for any property you and your partner may own. If either of you owns a business, you should gather as much paperwork as you can for that as well.
Talk to a Local Attorney
Divorce in New York is different than divorce in, say, Louisiana. This means that it is a smart idea to speak to a local attorney about financial considerations during divorce. Not only will an attorney be able to give you the most accurate advice, but they are able to offer support and understanding during a difficult time.
Track All of Your Expenses
Our final tip on how to budget for a divorce is simple – track your expenses. This is simple enough in today’s world. There is no shortage of apps that will help you easily monitor your spending habits. Once you have tracked your expenses for a period of time (a few months should be fine), you can create a post-divorce budget based on your income and expenses.
Tips for Your Post Divorce Budget
Now that you know how to budget for a divorce, it is time to turn your eye towards post-divorce budgeting. There are countless ways to save money after a divorce, but some of the most common include:
- Considering multiple sources of income – This may mean a second job, or it may mean freelancing as needed, but think about supplementing your primary source of income.
- Avoiding big-ticket purchases – There are some post-divorce purchases that are unavoidable (moving springs to mind), but minimize as many large purchases as you can.
- Save, save, save – Putting money into your savings account, even if it is ten or twenty dollars per paycheck, can help balance your post-divorce budget.
Choose the Experienced New York Divorce Attorneys
The aggressive and strategic attorneys at Brian D. Perskin & Associates are here to help. Whether you need financial advice for the divorce process or experienced, fearless litigators to fight for you in court – we are here for you. Call us now at (718) 875-7584 for your free consultation or complete our online contact form.