Divorce Budget

Ultimately, a divorce is about two crucial things: Finances and Kids. In an initial consult with a prospective client, I frequently ask about the short-term and long-term financial goals of my future client.  I need this information so my client and I can begin to work on a realistic financial plan.  If I have a wife that wants to go back to school, I need to figure out how much she needs.  If a husband wants to survive with a retirement in his future, we need to factor in the 401k payments.

The problem is that many clients have never really considered a “separate” and no-marital future. They haven’t thought about how much they need to make to survive and thrive. Or, the money has been controlled by one spouse or the other. They don’t realize that the “status quo of marital money” is about to be ripped asunder.  Normally, in a marriage, one person has been handling the finances and then comes the separation.  Suddenly, two household require electricity, cable, gas, rent, etc. The burden of paying bills doubles.

One tool for knowing the financial state of affairs is the Income and expenses statement. The income and expense statement is designed to give judge a picture of your budget.  Although relatively simple, this is a critical piece of a divorce.  The income and expense statement can be used for both temporary and long-term support.  This gives both the parties and the judge a brief snapshot of how much money is made and spent. The need to live within a budget become critical in most divorces..  The judge can also use the income and expense statement as a means of quickly comparing income for both parties.  He literally holds up Husband’s income and expense statement against the Wife’s income and expense statement and compares.  This gives him an idea of each parties needs and financial responsibilities.

If you would like to ask me a question, text James Phillips at (931) 217-7648 or email jphillipsaw22@gmail.com

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