Writer / Researcher
Custody X Change
Divorce leads to major changes in your finances. You might pay thousands for solicitor and court fees. With one income leaving your home, you’ll likely incur new expenses like child care if a parent will no longer be at home to care for the children.
While your ex should shoulder some of the burden for the cost of raising your child, it might fall mostly on you if you provide the child’s primary residence.
It’s a lot to take on, but if you’re proactive, you can manage.
Tip #1: Create a monthly budget
A budget can help you stay within your means and figure out where you need to cut corners.
As you prepare for divorce, make a categorised list of all your bills (e.g., housing, electricity) and expected expenses (e.g., food, petrol), along with how much you expect to spend in each category.
While bills are straightforward, it can be a bit tricky to estimate expenses. Look at receipts, bank statements and other proofs of payment to help you figure out your average expenses. Keep in mind, this amount might vary month to month. The goal is to figure out how much you spend on average so you don’t spend more than you make.
You could do separate accounting for your child’s expenses (a sound idea if the other parent is expected to pay a portion) or keep it all together. Example expenses you might incur because of your child include:
- Schooling (e.g., uniforms, tutoring, supplies)
- Transport
- Communications (e.g., TV, internet, mobile phone)
- Clothing and footwear
- Extra-curriculars
- Recreation (e.g., eating out, going to concerts)
- Child care
- Medicine
- Personal care
Add up your bills and expenses to get your total monthly spending.
Next, add up your earnings from work and other sources, like spousal or child maintenance if you’re receiving payments.
Subtract total bills and expenses from your earnings. You could allocate a portion of your residuals to savings. Include this in your budget as well.
If you’re left with zero or less, find ways to adjust your budget to suit your income. Your child might have a piano lesson once a week rather than twice. You might unsubscribe from a streaming service.
Keep track of your monthly spending to make sure you’re sticking to your budget. If you’re looking for a template for your budget, there are budget worksheets available online or you can create a spreadsheet. There are also finance apps that help you stay on top of spending.
Tip #2: Make a plan for shared co-parenting expenses
Co-parents often argue about how to sort out costs related to the children.
A good way to lessen headaches is to make a list of co-parenting shared expenses. Discuss with your co-parent how you’ll split each expense or whether one parent will cover the full cost.
You might split everything equally or split in relation to each parent’s income. You could keep track of these expenses and invoice one another for reimbursement at the end of the month.
Tip #3: Prioritise needs over wants
In the aftermath of divorce, you’ll feel some guilt that makes you want to spoil your kids.
It’s tough not being able to get your child everything they want. However, if you spoil them, they’ll expect that treatment all the time, which may not be possible with your budget.
Budget for gifts, entertainment and recreation last so they don’t get in the way of paying bills and buying necessities.
Tip #4: Teach your children financial responsibility
Help your children learn the value of money so their expectations become a bit more realistic.
One way to teach your children financial literacy is to give them pocket money. Assign chores for them to do to earn their money so they gain understanding of the work you put in to provide for them.
When your child asks for something pricey, encourage them to save up a portion of their pocket money until they can afford it so they learn the importance and benefits of saving.
If your child is mature enough, you could allow them to have their own bank account and debit card.
Tip #5: Seek help when needed
Newly divorced parents often feel the need to prove they can go it alone. While learning self-reliance is essential to moving on, there’s nothing wrong with getting help to benefit your child.
Professionals like financial advisers assist your transition to post-divorce life by advising you on your spending and how to save more. Plus, government resources are available. Reach out to family and friends for support as well. They can be especially important when it comes to saving on child care costs.
Read more articles by Zarira Love.
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About Zarira Love
Zarira Love has been researching and writing articles about child custody and parenting for nearly six years. She currently resides in New York City.
Zarira is a Writer / Researcher for Custody X Change.
About Custody X Change: This powerful tool helps divorced and single parents create parenting plans, track their custody schedules, manage expenses and more. Since 2005, we’ve helped over 60,000 parents ensure the best possible future for their children.