Nolo's Essential Guide to Divorce - Emily Doskow [19]
Make a Budget
The first thing to do is make a budget. Why? Because it's essential that you know what you are bringing in and what you are spending. You will probably need the information when you file for divorce in any event most states require that you file a statement of your assets, debts, income, and expenses at the outset of your case. If you have a lawyer, your lawyer will want the information even if it's not required by the court.
For another thing, it's very common to underestimate what you spend and, more important, what you will need to keep both households afloat. So, even though it can be tedious and requires an attention to detail that may be hard to muster right now, do your best to create a meaningful budget and stick with it.
It's easiest if you can work together with your spouse on this project. If that seems feasible, make a few copies of the budget forms in the appendix, so you and your spouse can each fill them out and then share information. When you're done, you should have a comprehensive picture of your financial status and needs during the separation and divorce.
If you can't work with your spouse on this, then just do your best to estimate your spouse's income and expenses. This will help you figure out what support you need and what your spouse might be able to pay or vice versa.
If you've never made a budget before, start by keeping track of your daily, weekly, and monthly expenses, from predictable ones, such as your phone bill, to the unexpected need for a new transmission. Include every bit you spend, whether it's for parking meters or cappuccinos. Then total those expenses and include them in the monthly budget in the appropriate category. For expenses that you pay regularly but less often, like yearly homeowners' insurance, semiyearly property taxes, or even haircuts every six weeks, either divide the amount to come up with a monthly figure or keep a separate list of major annual and irregular expenses, and use it to help you plan.
Budget forms. The appendix contains forms that you can use to start working on a budget.
• The Monthly Income form will give you a sense of what's coming in and also help you gather the information you'll need when you start to do support calculations later. If you have information about both you and your spouse, include it all; otherwise, do your own and estimate your spouse's.
• The Daily Expenses form will help you keep track of where your money is going. Be sure you write down everything you spend money on in the first column, and then use each daily column to track expenses for that item. (If your item is rent, then it will appear in only one of the daily categories, but if it's Starbucks, you may learn a little something about how often you indulge in certain treats.) If it's easier, you can create a daily expense form on which you list the types of expenses you typically have, and copy that so that you don't have to write the items in each time.
• The Monthly Budget form gives you a place to put your projected monthly expenses and then see how closely you stick to them over time.
If a regular salary is your only source of income, it should be pretty simple to fill out the Monthly Income form. But if, like many people, you're self-employed or work on commission, you'll need to average your income over some months to come up with an accurate picture. And it's important to include investment and other income, such as rents, on