Divorce and Alimony
Divorce and alimony are two topics that are highly emotional. Attorneys tell me the two most important factors considered when determining alimony are what the wife needs and the husband is able to pay. The wife must prove her need by explaining her expenses and ability to earn income. The emotional stress of divorce is quite intense. It is likely both spouses will have a hard time thinking clearly enough to sort out their expenses. If this is the case, I recommend they find an Accredited Financial Counselor to assist them at www.AFPCE.org. Do not rely on your divorce attorney to do this work for you. They are responsible for the legal issues of divorce.
A thorough monthly expense budget should have 140 items including housing, transportation, children, personal and medical expenses. Taking the time to understand your true expenses now is critical. Do you want to keep the house? Can you really afford to keep the house? You'll only know if you really have a thorough budget. Want to keep your soon to be ex-wife in the marital home with the kids post-divorce? You'll only know if you can really afford this if you understand your expenses.
You'll decrease divorce drama and cost considerably if you take the time to understand the numbers that most people overlook: Your monthly expenses and tax implications of divorce. After you understand these numbers, you'll be one step closer to getting a financially smart divorce.