Preparing for Divorce in Mississippi: Step 3D—What does your family spend?
Step 3D – Determine what your family spends
The dreaded budget. Most folks have thought about a budget, some have actually created one, and fewer have followed one. If you don’t have a budget, you need to create not just one, but two.
First, you need a current monthly budget. This is important for determining spousal support, alimony, property division, and child support. Additionally, you will need to list your monthly living expenses in the financial disclosure required in Mississippi divorces. If your spouse is self-employed, it can also show that your spouse is underreporting his/her income if your expenses exceed your income. Or it may show you are living beyond your means.
Second, you need a budget for post-divorce. This will serve many purposes. It will help you in negotiations to understand what you need to live separate from your spouse. It will assist you in understanding whether you need to make changes to your standard of living. Paying for two households as opposed to one is going to be more expensive. Most people divorcing have to adjust their standard of living. Like it or not, it is a fact of life. So be realistic in your budget. Don’t skimp and don’t inflate it. Skimping on the budget will cause you problems following the divorce, but inflating your budget will not sit well with the chancellor.
Finally, be able to substantiate your budget. That is, you base your budget on real numbers. If you are planning on moving out of the marital home (something we will talk about later), do some research as to how much rents are in your area.
For those who have never created budget, use the financial disclosure worksheet to come up with your expenses. It is fairly thorough. If you do your finances on your computer, such as with Quicken, QuickBooks, or Microsoft Money, it should be relatively easy to determine your monthly expenses. Remember to include those items you only pay semi-annually or annually such as property taxes and insurance.
