How Important Is the Budget in Divorce Planning?
I think everyone’s least favorite word is BUDGET. Why don’t we want to hear that word? Think about it: We’re asking ourselves to do something we don’t want to do — or worse yet, someone else is asking us to do it.
While we might not like them, having a budget does help. In divorce planning — whether you are going to litigation, mediation, or collaborative divorce — you need to have a budget. Budgets enable parties to understand where they are spending money and meet goals such as buying a new car, saving for home improvements, or most importantly, retirement.
A good example is how having a budget aids in deciding what to do with the marital home. Far too often people “bite off more than they can chew” in deciding to remain in the marital home. A budget can bring to light any potential shortfalls before making a decision.
If you don’t already budget your expenses, you are not alone. According to a Gallup poll from 2013, roughly 67% of Americans don’t make a budget. Luckily there are professionals who can help. For example, Certified Divorce Financial Analysts facilitate a frank discussion with you and your spouse about the scope of information that is required. Once that is gathered, a budget can be constructed that considers all of your liabilities and income — and then you should be able to predict the future a lot better than any crystal ball.
To find out how I can help, contact me.