Managing Your Money During a Divorce

How to manage your money during divorceThere’s no question that divorce changes your life significantly; its effects ripple through everything, right down to how you spend your money. Your Chapel Hill divorce lawyer will probably advise you to create a budget and manage your finances carefully so that you and your family are in the right position once you receive your divorce decree.

Where Does the Money Go?
Many divorces result in a loss of income – you’re running two separate households with the money you used to spend on just one. If you and your spouse earn different amounts, one of you may end up paying a specific amount of alimony each month, furthering your financial responsibilities. If you and your ex share children, it’s very likely that child support will change hands as well.

Budgeting During Divorce
In order to manage your money during divorce, the first thing you need to do is create a budget. Evaluate what you must spend and figure out where you can cut out items if necessary; the mortgage and utility bills are in the “must spend” category, while satellite TV and expensive dinners out can probably be trimmed if you need to save some cash.

Finances Play a Role; Inform Your Lawyer
Because your finances are likely to play a role in your divorce case, it’s imperative that you let your attorney know about your situation. Make sure you and your lawyer discuss what your new financial obligations may be, from taking over mortgage payments and car payments to paying alimony or child support.

Make sure you let your attorney know when your financial situation changes, too. If you get (or lose) a job, or if your spouse interferes with your money, your lawyer needs to be kept in the loop so that he or she can provide you with the right advice.