8 Budgeting Tips during Divorce

    The myriad financial obligations that accompany separating from your spouse can seem endless, especially since many payments will now be made on your own. In order to keep afloat of divorce fees, organize your financial records and learn the frequent financial mistakes others make so you don’t do the same — or you may find yourself drowning in debt.  Here are some steps to help.


1. Make order of the bills.
The first step to revising your budget is making some order out of the bills and bank statements that overflow from your desk drawer and spill off your nightstand. This means collecting, categorizing and creating folders for them. But not all papers in your piles are worth keeping. Decide what you need to hold on to and what can be tossed (after you enter them into your checkbook, it’s safe to throw away bills that do not affect your taxes, such as store receipts, utility bills, etc.).

2. Organize important records.
Critical records like your will, birth certificate, passport, 401(k) statements and tax returns, should be stored in a safe and easily accessible spot, such as a safe. Keeping things neat and clean is crucial for divorcing couples. “Make copies of everything related to financial issues,” said Santa Monica-based family law attorney David Pisarra. “When couples split up, bills are no longer jointly paid so if you are contemplating a divorce it’s critical to acknowledge the financial components that come along with it.”  

3. Determine spending each month.
Once all of your financial documents are organized, it is much easier to evaluate your savings and spending habits. Find out what you’re spending your money on each month, each week and even daily. “Write down from your checkbook and credit card statements what you actually spend and not what you estimate you spend. Most people are shocked by what they discover,” said Dawn Cardi, a prominent divorce lawyer in Manhattan.