Navigating finances following a divorce in New York can be overwhelming, particularly for individuals who are not used to overseeing their households’ finances. However, creating post-divorce budgets may help newly divorced individuals feel more in control financially following the end of a marriage. Here are a few tips for creating a comprehensive budget for life post-divorce.
How to create a budget after divorce
The first step in creating a budget after divorce is to gather all important financial information. For instance, gather investment account information, credit card statements and bank statements. Afterward, calculate monthly expenses, including mortgage or rent, utilities, grocery, insurance, transportation and entertainment costs.
Next, calculate employment income, along with any child support payments and spousal payments. Next, subtract the expenses from the income. If the expenses are higher than the income, it may be necessary to cut out discretionary spending, like entertainment, and focus on essential living costs.
How a family law attorney can help
A family law attorney in New York can help a client make informed financial decisions during divorce proceedings, such as those related to asset division, child support and/or spousal support. The lawyer can then help the client seek a fair settlement outside of court through a process like divorce mediation. During this process, the attorney will strive to ensure the client remains in the strongest financial position possible following the divorce. The right lawyer can help a client keep an eye on immediate financial needs while also seeking to protect long-term financial interests.