Divorce is often not an easy process when it comes to finances. Along with splitting up assets and determining child custody, you will also have to budget for life after your divorce. This can be challenging, especially when you are accustomed to having two incomes. In this blog post, Rozin | Golinder Law will provide tips on budgeting for life after separation.
Assess Your Current Finances
The first thing you should do to budget for life after divorce is to assess your current finances. This includes taking inventory of all your assets, such as savings accounts, retirement funds, and property ownership. You will also want to have an understanding of your debts and liabilities, such as credit card debt, mortgages, and car loans. After gaining a clear picture of your situation, you can budget for your new life.
Create a Budget
Now that you know your financial circumstances, you can create a budget for your life after your divorce. Start off by listing all of your income avenues and expenses. Be sure to include all essential costs, such as housing, food, transportation, and child care. You will also want to consider any debts you are responsible for, such as credit card payments or student loans. After developing a complete picture of your budget, you can begin to make adjustments.
If your budget reveals that you spend more than you bring in each month, you will need to make some adjustments. One option is to reduce your monthly expenses by cutting back on non-essential costs, such as entertainment and dining out. You may also want to consider increasing your income by working overtime, if possible, or taking on a part-time job.
Seeking Monetary Assistance
In some cases, budgeting for life after divorce may require more than just cutting back on expenses. If you struggle to make ends meet even after budgeting, you may need to seek monetary assistance from your former spouse. This can be done through child support or spousal support payments. You will need the assistance of an experienced attorney who can help you file the necessary paperwork to receive these payments.
There are several different types of spousal support payments in New Jersey.
- Open Durational: The court may award this type of spousal support if the marriage lasted for 20 years or more, you are unable to work because you must care for young children, or if you have a health condition that prevents you from working.
- Limited Duration: This type of spousal support is typically awarded when the marriage lasts for a shorter time, you can become self-sufficient, or if you contributed to the financial stability of your spouse during the marriage.
- Rehabilitative: This type of spousal support is designed to help one spouse become financially independent after divorce. It may be awarded if you need time to complete an education or training program.
- Pendente Lite: This type of spousal support is typically awarded when divorce proceedings are pending. It is designed to maintain the financial status quo until the divorce is finalized.
- Reimbursement: This type of spousal support is typically awarded when one spouse has contributed to the education or training of the other spouse. It is designed to reimburse the contributing spouse for their investment.
You must apply with the state to obtain child support payments in New Jersey. The amount of child support you receive each month will depend on several factors, such as the number of children you have, your income, and your spouse's income. In addition to monetary support, the non-custodial parent may also be required to provide health insurance for the children.
Legal Assistance in New Jersey
While budgeting for life after divorce is crucial, sometimes it is necessary to have additional support. The team at Rozin | Golinder Law can help review your case and determine if alimony or child support adjustments are necessary.
To schedule a consultation with one of our attorneys, call us at (732) 810-0034 or visit us online.