A divorce budget is a list of what your household costs now, what it may cost during the divorce, and what it may cost on one income afterward. Build it from the last 12 months of statements, not memory, then test it against each settlement option before you agree to one.
Many people have a rough budget for the household they live in today, and some have never needed to write it down. A divorce asks a different question: what does one household cost, paid from one income, once the agreement takes effect? That is the number that tells you whether a house, a support amount or a retirement split works for you, and it is much easier to work out before you sign than after.
This guide is general education. It does not recommend how much you should spend on anything, and the figures in the worksheet are yours to fill in.
Three budgets, not one
A single budget is rarely enough, because your circumstances change in stages. It helps to keep three separate columns:
- Today. What the household costs now, with both incomes and both sets of expenses where they still overlap. This is your starting point, not your plan.
- During the divorce. What may change while the case is open: a second household, legal and professional fees, temporary support in either direction, and any costs the court or your spouse may be asked to cover. Depending on your situation, this period can run for months or longer.
- After. What one household may cost on your income alone once the agreement takes effect, including any support you are scheduled to receive and the date it ends.
The third column carries real weight in a settlement, yet it is often left blank because it feels uncertain. A rough version built from real statements is more useful than none, and you can refine it as the details are settled.
Start with real numbers from the last 12 months
Memory tends to undercount. It remembers the mortgage and the grocery trips and forgets the annual insurance premium, the car repair and the three birthday weekends. Twelve months of statements catch the costs that arrive once or twice a year.
Gather the following for the past 12 months:
- Checking and savings account statements, including any joint accounts and any in your name alone.
- Credit card statements for every card you use or share.
- Your most recent mortgage or rent statement, property tax bill and homeowner's or renter's insurance declaration.
- Insurance bills for health, auto, life and any other policies.
- Bills for utilities, phone, internet and subscriptions.
- Records of children's costs: school, childcare, activities, medical.
- Your pay stubs and your most recent tax return, so that income and tax withholding are on the same page as spending.
If you did not handle the household money, When your spouse handled all the money covers where to start, and The documents you need before you file lists what to request and from whom.
Add the amounts up by category, then divide by 12 for a monthly figure. For costs that arrive once a year, add the year's total and divide by 12 as well, so a large bill does not catch the monthly picture by surprise.
A category walk-through
The categories below are a starting point. Add your own, and leave blank any that do not apply.
Housing. Mortgage or rent, property tax, homeowner's or renter's insurance, utilities, association fees, and a yearly allowance for maintenance and repairs. If the house is part of the decision, Should you keep the house in a divorce? shows how to price it on one income.
Insurance. Auto, life, disability, umbrella and any other policy you carry. Check who owns each policy and who is named as beneficiary, because those arrangements may change with the divorce.
Healthcare. Premiums, deductibles, co-pays, prescriptions, dental, vision and any ongoing treatment. If you are covered under your spouse's employer plan, ask the plan administrator when that coverage may end and what continuation options exist, and price a replacement before you finalize the budget. Health coverage can be a large line, and it may be one of the less visible ones if someone else has paid it.
Childcare and children's costs. Childcare, school, activities, camps, medical and any support for adult children. Your attorney can tell you how child support and the sharing of these costs are handled where you live, and the budget should show what you expect to pay either way.
Taxes. Your filing status and withholding may change after a divorce, and so may the amount you owe or receive at filing time. The IRS explains the rules for divorced and separated individuals in Publication 504, and its Tax Withholding Estimator can help you check withholding once your income is clearer. How any of it applies to you is a question for a tax professional. If support is part of the picture, Is alimony taxable or deductible? explains why the date on the agreement matters.
Debt. Mortgage, car loans, student loans, credit cards, lines of credit and anything you guaranteed. Note who is responsible under each loan, since a divorce agreement does not by itself change what a lender may expect from the people named on the account.
Irregular and one-off costs. Car repairs, home repairs, medical bills, travel, gifts, annual fees, moving costs and the cost of setting up a second household. List the ones you can name from the past 12 months, then add a line for ones you cannot yet name.
Everything else. Food, transportation, clothing, personal care, memberships, giving and savings. Include any savings you want to keep making, since saving is a choice the budget should show rather than assume.
The worksheet
Print this or copy it into a spreadsheet. Every cell is blank on purpose. The figures should come from your own statements, not from an average, because an average household is not yours.
Income, monthly
| Source | Today | During the divorce | After, on one income | Notes and end date |
|---|---|---|---|---|
| Your pay after tax | ||||
| Spousal support | ||||
| Child support | ||||
| Other income | ||||
| Total income |
Spending, monthly
| Category | Today | During the divorce | After, on one income | Where the figure came from |
|---|---|---|---|---|
| Housing | ||||
| Utilities and phone | ||||
| Food and household | ||||
| Transportation | ||||
| Health insurance and care | ||||
| Other insurance | ||||
| Childcare and children's costs | ||||
| Taxes not withheld | ||||
| Debt payments | ||||
| Irregular costs, divided by 12 | ||||
| One-off costs this year | ||||
| Savings | ||||
| Total spending |
Difference
| Measure | Today | During the divorce | After, on one income |
|---|---|---|---|
| Total income less total spending |
Mark any figure that is an estimate rather than a statement, and note the date. A budget that shows which numbers are firm is more useful to you, and to anyone helping you, than one that looks complete but is not.
Stress-test it before you agree
Once the "after" column is filled in, use it to test each option on the table. The question is not whether an option looks fair. It is whether it still works on one income, in a year when something goes wrong.
Run the "after" column against each scenario you are considering:
- Keeping the house. Replace the housing line with the full yearly cost: a new payment quoted by a lender, property tax, insurance, utilities and a repair allowance. Then look at the difference line. Does it hold when a large repair arrives?
- Selling the house. Replace it with what renting or buying something smaller may cost, and include the cost of moving.
- Receiving support. Run the budget with support, then without it, using the end date in the agreement. The second version shows what you may need to have in place before it stops. The first year after a divorce covers planning around that date.
- Taking more retirement savings and less cash, or the reverse. A pre-tax retirement balance and a cash balance are not the same dollar. How to put them on equal footing is covered in How to divide assets in a divorce and How to split retirement accounts in a divorce.
- A change in income. Test a lower income, a gap between jobs or a change in hours, if any of those are realistic for you.
Record each result on a small table like this one:
| Scenario | What changes in the budget | Monthly difference | What would need to give |
|---|---|---|---|
| Scenario 1 | |||
| Scenario 2 | |||
| Scenario 3 |
The point is not to find an option with no trade-offs. It is to see the trade-offs in numbers, with your eyes open, before the agreement is final.
Ask before you agree
Before you sign anything that sets support, divides property or settles the house, it may help to be able to answer yes to each of these:
- Have I built the budget from 12 months of statements rather than from memory?
- Does my "after" column reflect one household on my income alone?
- Have I included health coverage, taxes not withheld and a yearly allowance for repairs?
- Do I know the date any support ends, and have I run the budget without it?
- Have I tested the house, in both the keeping and selling versions, against the budget?
- Have I compared retirement money and cash after tax rather than at face value?
- Have I marked which figures are estimates and checked them with a lender, an insurer or my attorney where I can?
- Has a tax professional looked at how filing status, withholding and any support affect what I keep?
If any answer is no, that is a question to settle before the agreement is final, not after.
Where other people come in
A budget is a financial tool, not a legal or tax opinion, and it helps to ask each professional the right question:
- Your attorney answers what support, property division and children's costs may look like under your state's rules, and how the agreement should be written. I do not state those rules here, because they differ from state to state.
- A tax professional answers how filing status, withholding, support and any transfer of property may affect your taxes.
- A lender or insurer answers what a mortgage, a refinance or a replacement health or life policy may cost for you.
- A divorce financial consultant, which is the work I do, helps put the budget and the settlement options side by side, so the comparison is done before you decide.
Frequently asked questions
What is a divorce budget?
It is a budget built to show what your household may cost now, during the divorce and on one income afterward. It differs from an everyday budget in that it is used to test settlement options, such as the house, support or a retirement split, before you agree to any of them.
How do I make a budget after divorce?
Start with 12 months of statements, group the spending by category, and divide the yearly totals by 12. Then rebuild the figures for one household on your own income, using quotes for housing and insurance where you can get them. A blank worksheet like the one above keeps the steps in order.
Is there a divorce budget worksheet I can use?
The tables in this guide are blank so you can copy them into a spreadsheet or print them. The figures should come from your own records, since an average from somewhere else may not resemble your household.
How long should I plan the budget for?
It may help to look at the first year in detail and then at several years ahead, including the date any support ends. A budget that works in year one but not after support stops is useful to know about while the terms can still be discussed.
Should I include legal fees in a divorce budget?
Depending on your situation, legal and professional fees may be a significant cost during the divorce. Ask your attorney for an estimate and a billing arrangement in writing, and put it in the "during the divorce" column. How the fees are handled is a question for your attorney.
Do I need a divorce financial consultant to build one?
No. You are not required to have one. Some people find it useful to have someone build the budget with them, test the options and explain what each may mean over time while the attorney handles the legal side. The first conversation with me is complimentary and confidential, and you are under no obligation.
What to do with this
Gather the 12 months of statements first, then fill in the "today" column, then the "after" column. Run each option you are considering through it before you agree. Take the questions to your attorney and a tax professional.
If you would like the numbers built alongside you, this is the work I do, and the first conversation is complimentary.
This is general education, not advice about your situation. It is not legal, tax or investment advice. Rules about support, property and taxes vary by state and by circumstance, so check yours with your attorney and a tax professional.
