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Your post-divorce budget and how to tackle it

On Behalf of | Aug 24, 2023 | Divorce, Family Law

In a high-asset divorce like yours, the financial transaction that’s about to take place through the property division process is bound to have significant implications for your long-term stability. Given the stakes involved in your marriage dissolution, you need to be prepared to both negotiate and litigate your case if you want to protect your financial interests.

While most divorce cases end up settling without the need for trial, you can’t let yourself get pushed around during those negotiations. If you do, then you can miss out on several opportunities to secure the financial resources that you not only need but also the ones that you deserve. While there are a lot of tips that can assist you in crafting your divorce negotiation strategy, this week we want to look at one that’s often overlooked: the post-divorce budget.

Why budgeting matters

Property division in a New York divorce is supposed to be fair, though not necessarily equal. This means that there’s a lot of room for argument, and a lot of opportunity for you to miss out on key assets. This can happen, in part, when you don’t know what you need post-divorce to be financially stable and successful.

Budgeting can help here. By creating a thorough budget, you can come to the table with articulable needs. This, in turn, will help spur negotiations and set the parameters of the settlement that you want. It can also assist you in honing in on those key assets that are crucial to your post-divorce success.

How to create a post-divorce budget

Creating a post-divorce budget can be intimidating, but you don’t have to shy away from it. You should start laying the framework of your budget early on and revisit it so that you can tailor it to be as accurate as possible. Here are some tips that might help you craft your post-divorce budget:

  • Be honest about your income: Be sure to count everything you’ll bring in, from your salary to alimony and child support. But be realistic here so that you’re not over-inflating what you’ll bring home.
  • Identify all expenses: Count everything, from your mortgage or rent to your grocery bill and streaming services. Be as thorough as you can so that you have an accurate number to work with.
  • Consider cutting costs: If after subtracting your expenses from your income your financial standing is tighter than you’d like, consider cutting some costs. Popular places to look are discretionary spending like eating out at restaurants and housing.
  • Think about your marital standard of living: You might be able to get more out of your divorce if you can successfully argue that you need additional assets or spousal support to maintain the marital standard of living. So, as you’re budgeting, think about what areas of your marital life that you’d like to keep post-divorce.
  • Be realistic about supplementing your income: If your finances are too tight, then you might want to consider supplementing your income in some fashion. This might include taking on a part-time job or engaging in the gig economy.

Are you ready to head into your divorce?

There are a lot of issues that you’ll have to be prepared to address before heading into your divorce. You need to make sure you have an adequate plan before starting negotiations or litigation, otherwise, you could end up on the losing end of a divorce settlement.

We know that figuring out how to get through your divorce can be challenging, especially when you’re still dealing with the emotional realities of your situation. But you can find support and guidance to help you get through your divorce. And now is the best time to start preparing for your divorce so that you give yourself enough time to develop the legal arguments you need to position yourself for success.