Do You Budget?

Vacations, children, education, weddings, repairs/renovations are all large expenditures.   Some people determine how much they can spend for these things and then strive to stick to their budget.  Some people just charge the expenses and worry later about paying the bill. 

Divorce can be costly.  If you have been through one, hindsight can leave you wishing that you had done some things differently to diminish the cost.  Divorce is painful and for most a very emotional experience.  It is exceedingly difficult to set aside your emotions as you deal with the business of your divorce, but I highly recommend that you try to separate the emotional aspects from the business aspects.  From a financial perspective, consider your entire financial situation to be a pie that is made up of income, expenses, assets, and liabilities.  That pie is going to be cut and the pieces will be awarded to you and your spouse.  In most cases, the division will be done so that each party receives an equitable or fair amount of the pie.  Despite what your expenses are going into your divorce, once you receive your pie, you may have to adjust your expenses accordingly. 

So, how much should you pay for your divorce?  That typically depends on the complexity of your pie as well as your and your spouse’s willingness to negotiate.  Understanding the process and how the professionals that you retain to help you charge their fees will help you to control the costs.   

Divorce is a very emotional experience and yet it is also a time to make many critical decisions regarding your family and your finances.  As difficult as it may be, it is imperative to find a way to separate your feelings from the business of your divorce.  One way to do this is to hire the right team to help you with the financial and legal aspects.  Their counsel can help to keep you grounded and informed so that you can make the best decisions.  In many cases, it is also important to find a good therapist and/or support system to help you through the emotional turmoil.   Divorce is painful.  You can minimize the pain by committing to un-marrying your spouse and applying the same planning and budgeting that you would for any other major life event.