We’ve been talking about a number of things that you can do in order to prepare for a divorce. The sixth thing that you can do is prepare a budget. Budgets are important in a divorce situation for a number of reasons.
First and foremost we talked about an income statement in our last video. The companion to that is knowing where your outflows are going, what the money is being spent on and the things that can become critically important at several stages throughout the divorce process including calculations related to child support.
Expenditures Affect Child Support Payments
There are a number of expenditures that people are making over the course of any given month that can influence and sometimes significantly change the amount of child support that may be ordered in a particular case. It can also affect things like alimony. It can affect things like temporary support if those are issues that are before the court.
So making sure that you understand not only where your income is coming from, but having a budget laid out to know where your money is going and what your actual monetary needs are will help place you in the best position possible to protect yourself and the things that are important to you throughout the divorce process.