Spousal Support and AlimonyMay 29, 2023
If you are thinking about divorce, it's time to start thinking about your budget. Unlike child support, there are no formulas or bright line rules for spousal support (alimony). Instead, you and your spouse will have to take a look at your income and expenses. An honest look at your budget will allow you determine how much support you will need after divorce. It will also prepare you to make the difficult decisions that come with divorce.
- Can I afford to stay in my home?
- Will I be able to retire?
- How much can I afford to pay in tuition?
- Is this the right time to get a divorce?
Once you have completed your budgets, begin to ask your self, "what is fair and equitable?" Would a 50/50 split meet both of your needs and feel fair? How much money would need to be exchanged to allow you and your spouse to live similar lifestyles? To each have enough to pay expenses? Will you both have similar spending power? Similar income? Will you both be able to retire? What feels fair and equitable?
For most people this is very difficult and often ends in a shortfall. If that is the case, ask yourself these questions:
1. How can I get additional income?
2. How can I reduce my spending?
3. Is there an asset that can be sold to fill in the gap?
4. What will change in 5 years? 10 years? Retirement?
These can be worrisome questions, but you don't want to avoid doing the hard work of answering them. Once you have a clear understanding of your financial health, you will be better suited to make decisions that will improve your situation. Get help from a Divorce Coach if fear or limited beliefs are getting in your way of making decisions or thinking of solutions.
Email us to sign up for group or individual coaching.