How to Prepare For Living on Child Support and Spousal Support

Simple math dictates that two households cost more to run than one. Expecting to maintain your current standard of living based solely on Child support and Spousal support payments will prove to be difficult, because the court knows your ex now also has a household to maintain.

Of course, anything can happen in the future – you could win the lottery, for example – but there are far more productive things you can do than leaving it to chance, to ensure financial freedom for you and your family after divorce.

Budget Planning:  What Goes out, Must Come In

The first step is to make a budget. For those who have never had to utter the B-word because they didn’t handle the family finances, this can seem intimidating, but its elements are simple.

First, make a list of all the income you have coming in from child support, spousal support, government programs like the Canada child tax benefit, and any secondary sources like a part time job (don’t count occasional windfalls like tax refunds, bonuses or gifts).

Next, subtract all your Fixed expenses, like the mortgage or rent, utilities, car payments, debt payments and insurance. If you have any money left over at this point, you are way ahead of the game. Chances are, however, you are in the negative. Don’t despair, read on.

Play the Elimination Game

There is likely room in your budget for cutbacks.  Have you been thinking of getting rid of your landline or switching from cable to Netflix? Now is the time. What about the little luxuries you enjoy, like mani-pedis, takeout, blowouts and lattes?

We are not suggesting that you cut these entirely out of your budget; it’s not practical, and let’s face it, these little treats can help you get through the rough times. Simply increase the time period between indulgences.

Control Your Spending

Now that you have balanced your budget, the hard part is to stick with it. It may help to remember that this is not forever, only until you get on your feet again (whatever that looks like). Resist the temptation to buy everything with your credit cards, even if you earn points – instead, try paying with debit and maxing out points programs like Shoppers Optimum and Air Miles, that don’t require you to rack up debt.

Additionally, you can call your creditors and work out lower payments with them.

Enlist a Family Lawyer

One of the best ways to secure your financial future is to make sure you get the best possible settlement in the divorce. Fine and Associates has helped countless individuals with their Child support and Spousal support needs, with expertise and compassion.

Fill out the form at the right to request a free, private consultation, and let us help you move on to your next chapter without financial uncertainty.