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Divorce and the decline in household income

On Behalf of | Jun 6, 2019 | Divorce |

You and your spouse want to get divorced, and you have moved past it emotionally. You’re not wondering if it’s the right decision. You’re not conflicted about how to break the news. Instead, you’re focusing on the future.

One of your biggest questions is simply how you are going to make ends meet after the two of you split up. What types of changes could you see to your household income? Are you going to need a new budget?

First and foremost, yes, you do want to create a new budget. Do not assume you can spend the way you did before the divorce. Take stock of your new situation and really think about the realistic costs.

The amount that your household income will fall by largely depends on your gender. Statistics show that it could fall by around 25% if you are male. If you are female, though, it could fall by more than 40%. And those are just the averages, so it could drop even farther in your specific case.

You also want to remember that some of your costs will increase. You and your spouse shared the mortgage payments or rent payments before, for example. Now you have to pay your own rent and so does your ex. You both also have insurance costs, utilities, car payments and much more. Splitting up means you literally double some of your bills since you’re no longer sharing assets.

You can see why it’s so valuable to have a new budget and to carefully consider your financial position. Make sure you also know what legal rights you have to seek a proper outcome in court.