Why You Need a Post-Divorce Budget
After divorce, you're transitioning from a two-income (or shared expense) household to a single-income household. Creating a realistic budget is essential for financial stability and peace of mind.
Key Changes to Expect:
- Reduced household income (typically 30-50% less)
- Changed tax situation and filing status
- New housing costs
- Modified insurance expenses
- Potential child support or alimony payments
Step 1: Calculate Your New Income
List all sources of income after divorce:
- Salary/wages (after tax withholding)
- Child support received
- Alimony/spousal support received
- Investment income
- Rental income
- Other sources
Step 2: Track Fixed Expenses
These costs stay relatively the same each month:
- Housing (rent/mortgage)
- Insurance (health, auto, life, home)
- Loan payments
- Child support paid
- Alimony paid
- Utilities (average)
- Phone/internet
- Subscriptions
Step 3: Estimate Variable Expenses
These costs fluctuate month to month:
- Groceries
- Gas/transportation
- Dining out
- Entertainment
- Clothing
- Personal care
- Home maintenance
- Medical expenses
Step 4: Build Emergency Savings
Aim to save 3-6 months of expenses in an emergency fund. Even saving $25-50 per month is a good start.
Budget Templates & Tools
Use our divorce cost calculator and budget worksheet to get started.
Need Professional Help?
Complex financial situations benefit from expert guidance. Consider consulting with:
- Certified Divorce Financial Analyst (CDFA)
- Family law attorney
- CPA specializing in divorce
- Financial planner