By Ahsha Mootz
Going through a divorce brings practical changes, especially when it comes to your finances. One of the most important steps you can take during mediation is to prepare for what your financial life will look like after the divorce is finalized. Understanding and planning for post-separation expenses can help ease the transition and provide a clearer path toward financial stability.
Housing Costs
Whether you’re moving into a new place or assuming full responsibility for the family home, housing expenses can change significantly. Be sure to include rent or mortgage payments, utilities, property taxes, maintenance, and homeowner’s or renter’s insurance in your planning.
Child-Related Expenses
If you share children, your post-divorce budget should reflect your share of child-related costs. These may include child support, daycare or after-school care, school fees, extracurricular activities, and any medical expenses not covered by insurance.
Health Insurance and Medical Costs
If you were previously covered under your spouse’s health insurance, or were providing coverage for your spouse, you may need to secure your own policy or make changes to your current policy. While this can’t occur until the divorce is actually final, this can be a significant adjustment. Be sure to account for premiums, deductibles, and out-of-pocket healthcare expenses.
Transportation Costs
Transportation needs often shift after separation. Whether it’s commuting to work, handling school drop-offs, or maintaining a second vehicle, be sure to review these expenses as part of your revised budget.
Personal and Household Expenses
Daily living costs such as groceries, clothing, toiletries, and household supplies should be reviewed and adjusted as needed. You may also want to reevaluate subscriptions or memberships to ensure they align with your current lifestyle.
Budgeting as a Tool for Stability
Creating a detailed, realistic budget can be empowering. It allows you to make informed decisions during the mediation process and helps ensure that the agreements you reach will be financially sustainable in the long term. At West Coast Family Mediation, we provide our clients with a detailed spreadsheet that can help you work through these financial questions, ensuring both parties have a clear understanding of their future obligations and resources. And we use these budgets to discuss things such as cost sharing for children’s cost and support amounts.
Moving Forward with Confidence
Adjusting to life after divorce takes time, but with a thoughtful approach to budgeting, you can build a stable and manageable financial foundation.
Want to know more about divorce mediation? Call (858) 707-5133 to schedule a free consultation with our team and learn more about the process.