Planning for your financial future following a fair division of assets in your divorce is paramount. With our expertise as one of the best family lawyers serving the Sunshine Coast, we can provide valuable assistance with your post-divorce budget.
Creating a realistic post-divorce budget is important with a clear idea of what your new normal will look like financially. Assessing your new financial reality after a divorce can be a difficult, confronting process.
But it is necessary.
It may be difficult to adapt to your new financial situation, but an in-depth evaluation and strategic planning are the best ways to ensure stability and financial independence moving forward.
Remind yourself this is not the time to look in the past or play the “what could have been” game. Look at your present situation, distinguish your wants and needs and be realistic about your future financial and life goals.
Here are some practical tips for creating your realistic post-divorce budget.
Start Your Post-Divorce Budget By Gathering Your Financial Documents
You cannot create a realistic budget without clearly understanding your financial standing. We suggest gathering all of your financial documents, including:
- Tax returns
- Investment account statements
Compiling these documents will ensure an accurate insight into your income, expenses and debts and will help you develop a precise budget with achievable financial goals.
Examine Your Income
You can facilitate realistic financial planning by incorporating all sources of income into your post-divorce budget. Factor in all revenue streams, from employment earnings and rental returns to child and spousal support. Seeking advice from the best family lawyers on the Sunshine Coast and in Brisbane can make it more effective.
Identify Your Expenses
It is important to understand that your expenses will not necessarily be 50% of what they were when you were married. We suggest assessing your expenses on a monthly basis and, with the state of Australia’s current cost of living steadily increasing, round up slightly to ensure financial security.
While on the topic of assessing your expenses, it is important you distinguish your necessary and unnecessary expenses. Your marital status changing means your expenses may change, too. Remove or cut down on your expenses wherever possible before creating your budget.
These expenses can include:
- Children’s expenses
- Dining out
- Recreation and hobbies
- Travel and vacations
- Subscription services
- Home maintenance and renovations
While the above can play a significant role in your life, cutting back on discretionary expenses like these can be an effective way to adapt to your changed financial circumstances and prioritise essential needs during the transition.
Do you have an idea of the lifestyle you wish to have while transitioning from a married to a divorced person? Take the time to ensure your calculations are correct for a better chance of enhancing your future self’s well-being.
You may be pleasantly surprised with what you can achieve financially.
Factor In An Emergency Fund
An emergency fund is vital in helping you provide a financial safety net should any unexpected expenses arise, like job loss or medical bills. We recommend saving three to six months’ worth of your living expenses and budgeting a portion of your monthly income to go into your fund.
Financial Security Is Achievable With A Post-Divorce Budget
Financial security can be your reality if you take the right steps to make it so.
If you are unsure about where you stand financially following your divorce you should seek financial advice from a financial advisor or an accountant. These experts have the ability to work closely with you to work through your budget and help you plan for your financial future.
If you need assistance in connecting with a financial expert or otherwise need legal advice regarding your divorce or separation then Life Law Solutions can assist. As Brisbane and Sunshine Coast divorce lawyers, our extensive experience and caring approach allow us to help clients create a stress-free transition into their new normal.
Ready to navigate your divorce with confidence and secure your financial future? Consult with the best family lawyers on the Sunshine Coast and in Brisbane today. Contact us now for expert guidance and support.