How to Create a Budget After Divorce

Posted on by Robert J. Reeves

Creating a budget after divorce is absolutely critical. Things have probably changed for you financially now that you’re separated. You may have to make some lifestyle changes in order to stick to a healthy budget. To set your budget, you first need to figure out exactly how much money is coming in. Next, calculate how much your essentials cost. Then calculate any discretionary spending and figure out how much of it you can cut out. And finally, track everything you pay for so you know whether or not you’ve stuck to your goal. Hopefully, by creating a budget, you’ll be able to adjust more easily to your new life and create a savings cushion.

How to Create a Budget After Divorce: Make a Plan and Stick to It

Figure Out Money Coming In

Creating a budget after divorce starts with calculating exactly how much money is coming in. This doesn’t mean your salary. This means your salary minus anything that gets taken out of it. For example, take into account taxes, social security, and 401k deductions. If you are receiving or paying out alimony or child support, include this. Your overall income might be very different now that you are calculating it without your spouse’s additional earnings. You need to know exactly how much money you have to work with at the end of the day.

Calculate Essentials

Next, when creating a budget after divorce, figure out your absolute essentials. You’ll want to know exactly how much money each month you need to survive. These include things like rent or mortgage payments, utilities, health insurance, and groceries. In addition, you may consider a car payment or internet access to work from home as essential needs. Don’t forget essentials for your children like daycare payments.

Calculate Discretionary Spending

Anything that isn’t essential is considered discretionary spending. This is where you can make lifestyle changes and possibly cut your spending if you’re trying to budget after divorce. Some of these things might feel a bit more essential than others. For example, maybe you could give up eating at restaurants several nights a week, but you really don’t think you could give up Netflix. Decide which things are necessary for you to really enjoy life and which things you might be able to reduce or cut out entirely. For example, perhaps you could subscribe to Netflix and Hulu and cut out your cable bill. Or find a car with a smaller monthly payment.

Track Your Spending

Finally, trying to stick to a budget after divorce means you have to track your spending. Otherwise, you won’t know whether or not you’ve actually stuck to your spending goals. Every time you spend money on anything, write it down. There are apps on your phone for this, like Mint, that will help you track your spending. They can give you some idea of how much you’re spending on things that really aren’t essential.

Creating a budget after divorce is important since your financial habits might need to change. It’s difficult to make the transition from two budgets to just one, but a budget will help. Figure out exactly how much money is coming in at the end of the day. Then figure out what your essentials are each month. Next, calculate how much you’d like to spend on discretionary things. And finally, track everything you spend money on so you know if you’re sticking to your goals. Budgeting is an important life skill and one that might serve you well in your new single life, and if you meet another partner down the road. Sticking to a budget might allow you to build up savings for things like home improvements, travel, and emergencies.

Getting Comfortable Talking About Money

Posted on by Robert J. Reeves
Getting comfortable talking about money with your spouse or significant other is readily important for the health of your relationship. Money is a huge part of life, and so if you plan to share your life with another person, money is bound to come up. Start the conversation early in your marriage, and keep checking in with each other frequently. The money conversation should be a big part of your life. Setting financial goals together can also bring you closer as a couple. You’ll be able to better understand what values you each have and what you both what your future to look like. While it can be awkward at first, having a money conversation with your spouse is an important part of building a strong foundation for your marriage.

Getting Comfortable Talking About Money with Your Partner

Why?

Getting comfortable talking about money with your spouse is important because, unfortunately, money is the root of a lot of problems in relationships. Having different views about spending and saving is okay, as long as you both are aware of it. And are comfortable having conversations about it. When one partner is “in charge” of the money and the other is unaware of your financial health, it can also lead to problems in your marriage. You should both have a clear picture of your finances.

Start Early

It’s important to start getting comfortable talking about money early in your relationship. Even before you marry. Make sure that you and your partner have financial goals and visions of the future that align with one another. If you find that you are very different in your approaches to finances, speaking with a couples counselor can be very helpful in opening up the lines of communication.

Check-In Frequently

It’s also important to continually check in with your partner when it comes to your finances. You should be having many conversations in a year about your finances so that you both know exactly where things stand. Don’t let the money conversation only be a topic when things are tight or when you’re both stressed. Instead, keep talking about money throughout your marriage.

Set Goals Together

Finally, setting financial goals together can help you with getting comfortable talking about money together. When you talk about your future, it can bring you closer because you’ll learn what sorts of things your partner values. Plus, you’ll each have a hand in building that future you both want. You can set short-term goals like saving for a new couch or long-term goals like saving for retirement or anniversary vacations. Getting comfortable talking about money with your spouse can help you avoid financial-related drama and arguments later on down the road. Finances are often a major factor in couples deciding to divorce. And a lot of times, it’s because they never really got on the same page with discussing finances. Set yourselves up for success by starting the conversation about your finances early on in your relationship. Check in together frequently so that you’re both on the same page with where you stand with money. And finally, set financial goals together and plan for your future. Don’t let finances be a source of conflict in your relationship.

Extra Income Post-Divorce: Making Money

Posted on by Robert J. Reeves

The financial costs of divorce can have you eager to start working again. Still, even when you start working, you might find yourself needing some more money. That’s why it’s useful to look for extra income post-divorce. There’s a few ways you can earn that extra bit of cash…

Extra Income Post-Divorce: Financial Independence

Sell old belongings

One way to get some extra income post-divorce is by selling off things you don’t need anymore. Everyone has some things which are just taking up space in the home. This could be old clothes sitting in the closet, or some decor or furniture that goes unused. Rather than letting it go to waste, it can be useful to try and sell them.

Even if it’s older or in rough condition, you’d be surprised how much you can get for old clothes, furniture, and other items. Plus, on top of getting some money, you also create space for new replacements. While an old-fashion garage sale can work well, there’s also a lot of stores which will take your old items off your hands.

Pick up a “side gig”

There’s been a lot of talk about “side gigs” these days. These are something you do outside of your main job to get a bit of extra cash. That means they’re also pretty handy for getting extra income post-divorce. What’s nice is that there’s a wide variety of gigs you can try your hand at.

For example, everyone is familiar with ride sharing services like Uber or Lyft. However, you could also try freelance writing if that sounds more up your alley. There’s also transcription services; many of them can be done online, and at your own leisure.

Look for seasonal work

Maybe you only need some extra income post-divorce for a short time. One common time people like to make more money is around the holidays. In these cases, where it’ll only be temporary, you could also look for any seasonal jobs that are hiring.

Like the name implies, these jobs will only need you to work for a short time. Plus, they’re usually eager to fill the positions. If you can find a way to fit them into your schedule, and don’t mind the work, then they can be a nice way to make some more money.

How-to Start Working Again After Divorce

Posted on by Robert J. Reeves

When going through a divorce, you will need to start thinking about your financial situation. Perhaps you were a stay-at-home parent during your marriage and do not have a job now. This life change may now require you to start working again after your divorce. This may be an easy transition for you, but some may also find it to be challenging to reenter the workforce.

How-to Start Working Again After Divorce: Life Transition Preparation

Finances

First, you will need to take a hard look at your finances. Perhaps even after the divorce, you will be in a financial situation where you do not have to work. However, it may be the case where you determine that you will need to start working again after the divorce. Depending on your finances, you will be able to determine if you will need to get a full-time or a part-time job. You will also need to consider if your skillset will allow you to get a job that can cover your expenses.

Continuing Education

Perhaps you have determined that you do not have the skills for a job that gets the income level that you desire or need. In this case, before you start working again, you may need to go back to school. There are quick programs that you can do, such as becoming a dental assisting or a licensed real estate agent. There are even bootcamps for coding classes or digital marketing that will fast-track you to a new career.

For you, getting back into your career may even just be a matter of taking a few continuing education courses to brush up on your knowledge and skills. If you have been out of the workforce for a while, your field likely has new made advancements. Refreshing and updating your skills will make you a more competitive candidate.

Evaluate Your Interests

You will want to evaluate your interests before you start working again. You may have went to school for one thing, but no longer be passionate about that anymore. It is very common for people to find a new career path during their life. Think about what things you enjoy doing and think about how you can apply those things to a job. You will be more likely to enjoy your job if you are doing something that you love.

While it can be daunting to think about going back to work after being out of the workforce for a while, or needing to find a new career that better fits your current situation, it is very possible to do this. Just look at your finances, take courses if needed, and consider your interests. Following these steps will help make the transition much easier.

Dividing Student Loan Debt in a Divorce

Posted on by Robert J. Reeves
Dividing student loan debt in a divorce can get very complicated. Everybody knows that during a divorce, spouses must divide up their assets. But not everybody realizes that they also divide their debts. Divvying up student loan debt depends a lot on when you took out the loan as well as what the money was for. It also is important to lay out who benefitted from the loan. A judge will take into account many things when deciding to divide up marital assets. There isn’t any one answer on how loans are split. However, the goal of any judge is to make things fair and equitable for both parties. The best way to ensure that you are getting the best settlement possible is to hire an experienced divorce attorney to represent you.

Dividing Student Loan Debt in a Divorce: What Happens to Debt?

Pre-Marital vs. Marital Debt

When dividing student loan debt in a divorce, a judge will ask “when did you take out the loan?”. If you got the loan before marriage, then it is not a marital debt. Therefore, your spouse would likely not take on any of the debt during a divorce. However, the loan is a marital debt if you were in school when you married. Or if you took the loan out after marriage. In this case, a judge will decide how to split it fairly.

Where Did the Money Go?

Another question that a judge will try to answer is “where did the money go?”. If you used the money on something like housing, then your spouse also benefitted from it too. In this situation, they might be responsible for some of the debt. However, if it was entirely for tuition, a judge is more likely to assign the debt only to the student.

Who Benefitted from the Loan?

When trying to divide student loan debt in a divorce, a judge will also look at who benefitted from the loan. For example, if you divorce right after graduation, then your spouse is not likely to benefit at all from the loan. However, if your spouse graduated and used the credentials to get a high-paying job for many years before the divorce, then you did benefit. A judge is more likely to split the debt if you benefit from the money and your spouse’s education.

The Big Picture

While there are many factors that a judge takes into consideration when dividing student loan debt into a divorce, they are mostly looking at the big picture. For example, they will take into consideration things like each of your salaries and assets. They’ll also consider alimony and other spousal support payments. The goal is to divide your marital assets and debts equitably. When a judge is dividing student loan debt into a divorce, things can get a little messy. Just as with all aspects of divorce, a lot of factors contribute to the divvying up of debt. A judge will look at when you took out the loan as well as what you spent the money on. They’ll also think about who benefitted from the money and how it fits into the overall picture of your financial health as a couple. The goal of any divorce proceeding is to split up marital assets, property, and debts in a way that is fair to both parties. Hopefully, if you have concerns about student loan debt, your divorce attorney can help you navigate them and ensure that you get the settlement you are entitled to.

Financial Infidelity: Potential Signs

Posted on by Robert J. Reeves

When people think of a spouse cheating, most of the time they think of physical encounters. However, financial infidelity is something which not only occurs, but is also on the rise. Knowing some common signs of this infidelity can help you see if it’s occurring in your marriage…

Financial Infidelity: Unconventional Cheating

Missing cash

Have you noticed money missing from a joint account you and your spouse share? Does your bank statement show a lot of withdrawals you don’t know about? If so, you might want to be careful. Missing money can be a potential sign of financial infidelity.

Now, sometimes a spouse will take out money for something and forget about it. That’s totally normal. However, constant withdrawals for varying amounts can be reason for concern. When you notice this, you’ll want to ask your spouse about what’s going on. In the meantime, try to keep your money in a separate account to keep it secure.

Many new purchases

If your spouse is making a lot of new, constant purchases all the time, that can also be a sign of financial infidelity. Of course, people like to treat themselves every now and again. It becomes an issue when it seems like your spouse is making a purchase every other day. Usually, these purchases can be very cheap, very expensive, or somewhere in-between.

Your spouse might even try to hide these purchases from you. They may always try and get the mail or packages, or use a separate bank account to prevent the purchases from showing up on your end. Sometimes, they might even use something like a P.O. box so they never arrive at the house!

They don’t like financial talk

Talking about finances is a part of any good marriage. Plus, if you feel like you’ve noticed signs of financial infidelity, you’ll want to bring them up to your spouse. Yet, what if your spouse gets upset when you try to have these conversations? This can actually be another sign that financial infidelity is going on.

If you talk finances to your spouse, they might be worried you’re going to bring up their actions. This can make them want to avoid talking about it all together. Still, it’s important to do so if you want to fix this problem together. Not doing so will strain things even more.

Budget Mistakes: Post-Divorce Finances

Posted on by Robert J. Reeves

Having a good budget is important for your post-divorce finances. However, not everyone gets it right the first time. Making budget mistakes can really add some financial stress which you could’ve avoided. Therefore, it’s important to know what are some common ones, and how to fix them…

Budget Mistakes: Common Missteps

Forgetting what’s “essential”

When most people make their new budget, they want to focus on essential expenses. These are the things they know they’ll need, and have to make sure they have money for. Still, many people tend to forget what exactly counts as an essential and what is something they could go without, which is one of the more-common budget mistakes.

For instance, things like grocery shopping, utility bills, and rent/mortgage payments are all essentials. You will need to pay these things so you have food to eat and a roof over your head. Yet, you don’t need premium subscription services or streaming services. It might not seem like much, but that extra money can really make a difference.

Overestimating income

Another of the common budget mistakes has to do with income. For most people, their income is the money they can use on their expenses, and hopefully save up as well. The issue is that income isn’t the simple, straightforward number we tend to think that it is. Rather, they need to account for net income.

Net income is the amount of money you actually take home. After all, everyone has taxes and other deductions taken out of their paycheck. That’s going to limit the amount of money you’ll have to spend. Therefore, you need to plan around that net income instead.

Not seeking outside help

Budget mistakes can be troublesome, but they are also something you can fix. Sometimes, however, you might struggle to see what exactly you need to change. When this happens, you’ll want to avoid yet another mistake where you don’t get extra help.

Meeting with some kind of financial adviser can help you see what’s wrong and how to fix it. They will work with you to look at your budget, and make sure you understand what’s causing issues. Then, they’ll develop a plan to help you turn things around and make it finally work for your needs.

Prenuptial and Postnuptial Agreements

Posted on by Robert J. Reeves
Prenuptial and postnuptial agreements are very similar in many ways. Both are legal contracts that protect a couple financially in the event of a divorce. However, prenuptial agreements are for couples that are about to wed, while postnuptial agreements are for couples that have already. Both of the agreements can outline what happens to assets and properties after a couple gets a divorce. However, no matter which type of agreement you’re deciding on, speaking to an experienced attorney is the first step to take. They can help ensure that the agreement is legal and binding and make sure that you protect yourself in the case of a divorce.

Prenuptial and Postnuptial Agreements: Who Needs What

Prenups

Prenuptial and postnuptial agreements are similar in their substance, however, you use them at different times. A prenuptial agreement happens before marriage. Many couples use them if one spouse is coming into the marriage with considerably more assets than the other. They can protect you if your partner brings a lot of debt to the marriage. They can even protect children from previous marriages. If a couple cannot agree on a prenuptial agreement, they might decide not to proceed with the marriage.

Postnuptial Agreement

In contrast, a postnuptial agreement is used after a couple gets married, so it’s too late to call off the wedding at that point. However, prenuptial and postnuptial agreements still cover similar things. For example, they can outline what happens to assets in the case of divorce. They can cover things like spousal support and what happens to debt.

When to Use Each

While prenuptial and postnuptial agreements are similar, it’s important to know when to use each. Couples that did not get prenuptial might later get postnuptial if they are married. A postnuptial might be helpful if one partner has a sudden windfall. For example, if they inherit a large sum of money. In addition, it can protect a spouse if their husband or wife has reckless spending habits and is accumulating large debts.

Creating an Agreement

Both prenuptial and postnuptial agreements need to be written by an experienced attorney. They can help ensure that the agreement is legal and enforceable. Contact an attorney to help you figure out exactly what to include in your agreement so that you are protecting yourself as much as possible.

Prenuptial and postnuptial agreements are both legal documents that can outline what happens to a couple’s assets in the event of a divorce. And both of them are a great way to protect yourself financially in the event of your marriage ending. However, they differ because a prenuptial agreement is for couples that are about to marry, and a postnuptial is for those that are already in a marriage. You can use either one to protect your assets and any children from a previous marriage, and guard yourself against your partner’s debt. If you are wanting to create either a prenuptial or postnuptial agreement, you’ll want to contact an experienced attorney. They can ensure that you include everything you need to protect yourself as much as possible.

Who Gets the Marital Home in a Divorce?

Posted on by Robert J. Reeves
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 The question of who gets the marital home in a divorce depends a lot on where you live and your unique situation. This can often be one of the most complicated aspects of a divorce proceeding because it’s often a couple’s biggest asset. In addition, there are always a lot of emotional connections to a family home. When couples are trying to decide what to do about the marital home, there are typically three common options. One spouse might stay in the house while the other moves out. Or both spouses might sell the home and each takes their equal portion. And unfortunately, couples often cannot agree and wind up needing to go into litigation over this and other issues. If this is something you are wondering about, the best thing to do is to hire an experienced divorce attorney who can represent your interest
The question of who gets the marital home in a divorce depends a lot on where you live and your unique situation. This can often be one of the most complicated aspects of a divorce proceeding because it’s often a couple’s biggest asset. In addition, there are always a lot of emotional connections to a family home. When couples are trying to decide what to do about the marital home, there are typically three common options. One spouse might stay in the house while the other moves out. Or both spouses might sell the home and each takes their equal portion. And unfortunately, couples often cannot agree and wind up needing to go into litigation over this and other issues. If this is something you are wondering about, the best thing to do is to hire an experienced divorce attorney who can represent your interests.

Who Gets the Marital Home in a Divorce? Post-divorce Living Arrangements

Questions of Legality

Who gets the marital home in a divorce often depends a lot on what state you live in. In North Carolina, if you are legally married, you and your spouse own your property as tenants by the entirety. This means that you each have an equal share in the house. In other states, things are handled differently. An attorney can help you understand the rules and rights in your state.

One Spouse Stays

Often, the way things are handled in the marital home in a divorce is for one spouse to stay and the other to move out. Often this decision depends on each spouse’s financial situation, job, and custody situation. If one spouse is the main caregiver for the children, it’s often easier for them to stay in the home and let the other spouse move out. However, some couples choose to share the home even after divorce.

Both Spouses Sell

Another common situation that happens with the marital home in a divorce is that both spouses agree to sell the home. Each would get an equal share of the proceeds from the sale. This is often the case for couples in which neither person wants to stay in the home. This might be for emotional or financial reasons.

Spouses Cannot Agree

Finally, and most commonly, spouses cannot agree on how to handle the marital home in a divorce. If this is the case, they often need to go to litigation over the issue. A judge will decide what is the most fair and equitable way to handle the situation. If you are facing this option, the best way to protect yourself is to hire an experienced attorney.

Handling the marital home in a divorce is often a complicated and tricky topic. It can also be one of the more emotional aspects of ending a marriage. Your family home contains so many memories and is often a couple’s biggest asset. A lot depends on where you live, but in North Carolina, couples own their properties equally. If couples can agree outside of court, they often choose for one spouse to move out while the other stays in the home. They might also jointly agree to sell the home and split the proceeds. But more often than not, couples end up in litigation. The best way to handle this situation is to hire an attorney to help you get the settlement and divorce situation that you deserve.

Home Buying Post-Divorce

Posted on by Robert J. Reeves

When your divorce is over, it might be nice to spruce up the home a bit. However, what if want to live somewhere new? Home buying post-divorce can be a bit complex, which is why you’ll want to make sure you do it right…

Home Buying Post-Divorce

Be financially ready

Before engaging in any home buying post-divorce, you need to be financial prepared. Divorce tends to leave a big impression on a person’s finances. You might have to not just pay divorce costs, but also adapt to a new single-income household. This can leave your finances in a bit of a critical state.

Plus, buying a house isn’t cheap. It’s a big financial commitment, so you need to be sure you’re ready. Consider what you have saved now, and if it’ll cover buying a house and the other costs, like moving. It’s much better to wait and save in order to avoid financial issues.

Know your needs

Another thing to consider when home buying post-divorce is what you need in a house. For instance, if you have kids, you’ll need rooms and space for them. If you don’t, then you could make due with a smaller home. Or, maybe you need a house which is closer to your new job.

When you recognize your needs, you can plan your house searching accordingly. Plus, you’ll also avoid buying a house with things you don’t need. After all, the bigger the house, the more it’ll cost. Saving money when you can is always handy with purchases like these.

Use a professional

Home buying post-divorce isn’t something you want to do blind. Trying to find house and look at them yourself is going to be a struggle. Plus, odds are you don’t know the finer details which you should be looking for. That’s why it’s useful to bring in a professional.

Making use of a real estate agent can help ensure you find the right house for you. These agents will know what homes are available, if they fit your budget, and where they may need repairs or inspections. That way, you don’t get burned on a potentially bad buy.