Once a divorce is initiated, a couple with children who are preparing for a contested divorce must expect to spend several months haggling over terms. During this period of time, certain funds and assets are inaccessible as property is separated. The loss of income assistance from a spouse combined with the expenses associated with a divorce can create financial difficulties. It is important to budget available income so that the household can continue to survive without a former spouse becoming desperate to accept any settlement simply to receive financial assistance. Advice for budgeting during a divorce can make the difficult transition easier to manage.
Document Spending Habits
Prior to even attempting to establish a budget take the time to document spending habits of the family. The best way to come to a correct number is by going over past credit card receipts, bank transactions, pay stubs, and cancelled checks. Going over all financial documentations will show you how much money your family previously brought in and how the money was spent. Using actual transaction records rather than existing budgets increases your chance of coming up with an accurate record of what is being earned and how the money is really spent.
Create a Realistic Budget
Once you have an idea of how much money the family earned prior to the divorce you can work on creating a budget that utilizes only your income. It is important that the budget you create is realistic and is not made using possible child support or maintenance income. Only rely on money that you yourself are guaranteed to earn and be realistic about the amount of money your household spends on food, bills, gas, and other expenses. Ignoring real expenses to make the budget work on paper can create serious problems in the future when you are forced to rely on the budget you created.
Use Calendars to Monitor Real Time Cash Flow
The budgets we usually create are static and do not reflect day to day fluctuation that occur or in cash flows. Using calendars to further track the day bills are due, when payments are received, and what balances are each day is a way to keep track of your cash flow. Failing to account for times when more than two paychecks are received in the month, months that are longer or shorter than 30 days, and other possible changes can create problems with your budget during a time frame when any change in income or expenses could be disastrous.
Why an Attorney is Necessary
During a divorce finances are extensively reviewed so that the court understands the finances of each spouse. An attorney is able to help you create an accurate financial affidavit that does not omit information that could cause financial harm in the future. Going over finances prior to submitting documents to the court is much harder than creating an individual budget making a qualified attorney necessary. The divorce attorneys at Vayman & Teitelbaum are conveniently located in Alpharetta, Lawrenceville, Cummings, and Marietta. We are able to provide you with the assistance you need and can be reached at 678-736-7700 to schedule an appointment.