Budgeting after divorce is a crucial skill to master when undergoing such a transition. Two residences can frequently be far more expensive to maintain than one. With the correct basic living expenditures budget, it may be easy to maintain your balance during this change.
1. Work With An Experienced Real Estate Broker
One of the most mentally and emotionally trying experiences a relationship will ever go through is divorce. The division of assets, including real estate, and, specifically, the determination of the status of the family home, complicates that. Budgeting after divorce can become contentious, especially regarding your residential home sale. Understandably, you may have an emotional attachment to your home, making this decision hard even in an amicable divorce. A property sale may become a source of rage and get emotional if disagreements arise.
While selling your house while going through a divorce is feasible, several concerns need to be resolved. This includes figuring out if the court considers the house as separate or common property. If you and your spouse are co-signers on the mortgage, you should never act alone.
When budgeting after divorce, you can use a commercial real estate broker to sell your home. Before accepting any home selling offer, all sides must be involved and agree on how the house will be sold. If the house is being sold according to a court order, a real estate agent isn’t required to notify the opposing party or their family law counsel.
When budgeting after divorce, the spouse who’s remained behind should get the house ready for the listing if that was the agreement. Cost share the necessary repairs to improve the home’s esthetics and thus improve its market value. Trust between you is necessary to get the ball rolling on this part.
Get licensed realtors knowledgeable about the current real estate market as they can price a home accurately the first time. However, if market conditions change, there are situations when it isn’t possible to do it right the first time. Don’t be too eager to accept just any offer and be done with it; ensure you get your money’s worth.
You can get a two-in-one deal if you use the same realtor to help you find another place to settle. Having worked with them means they understand your needs, tastes, and specifications. They will, therefore, help you find a place that is up to your standard.
2. Keep Up With Your Car’s Maintenance Needs
When budgeting after divorce, find your credit report to ensure you have a plan on how to clear any possible car lease or loan debts. If you were a two-car household, chances are the dividing of these assets was easier. The payments will be cleared by whoever’s name is on the lease or loan agreement and as per your divorce judgment.
When budgeting after divorce, you’re probably working with a one-person income instead of when you were married. You may, therefore, be tight on budget. The most aggravating thing about car repairs is that they can happen anytime and range in price from a few dollars for a spark plug to thousands of dollars for a new transmission.
To avoid major car repairs, when budgeting after divorce, set aside money for regular car maintenance. This includes regular oil changes, tire checks, and cleaning air filters. Remember that the Internet has several how-to guides to help you with DIY repairs. Finally, shop around and ask for a discount when you get a repair shop.
3. Partner With a Roofer
To budget for a roofer when budgeting after divorce, you must first establish a pre-divorce budget and compare it to your post-divorce budget. This will enable you to gauge your financial situation and see how much you can allocate to the project.
Stay on top of simple roof maintenance to help alleviate the repairs. Fixing leaks, cleaning the gutter system, and trimming the nearby trees are ways to maintain your roofs. If your partner is the one who was in charge of that, you can call a regular roof maintenance person.
If you have a major roofing project or an emergency, compare prices from several contractors and shop around for roofers. You could also want to seek recommendations from friends, family, or neighbors who have already hired roofers. With roofers, you might be able to bargain for a discount or a payment schedule.
Have a realistic budget. Start by determining how much a roofing project typically costs in your region. This will provide you with a starting point number. It will also help you not get taken advantage of.
Have a general idea of how much the required materials will cost. Next, consider any special circumstances surrounding your project that can raise the cost, such as the size of your roof or the requirement for more supplies.
4. Keep A Plumbing Service On Speed Dial
When budgeting after divorce and including plumbing repairs in the budget, finding the right plumber is key. You’ll find that having a dependable professional on hand can help you save time and money whether you have a leaking faucet or are remodeling your bathroom.
Costs will increase when the plumbing footprint or arrangement changes. It will always cost more to relocate supply and drain pipes, particularly huge objects like sewer pipes and vent stacks. For bathrooms, try to maintain your shower, sink, and toilet to cut costs.
Understand plumbing basics from how-to books or the Internet to ensure your plumber gives you a fair quote. For your plumbing services, you can shop around for more affordable materials. Ask your plumber to recommend more affordable options to save money.
5. Get Separate Insurance
Most car insurance companies demand that married couples share car insurance coverage for any vehicles kept at the same address. But when budgeting after divorce, you must consider this factor because of possible relocations. In this scenario, you’ll need separate policies. The Insurance Information Institute advises obtaining a separate car coverage as soon as you or your ex-spouse changes your address. Your annual rate may change depending on your driving record, claims history, discounts for multiple drivers or cars, and credit history (in some jurisdictions), whether your policy is split off or you remain on the current one.
Your score may have been lowered if your ex-spouse had a few accidents on their record, which could result in a lower price when you separate your car insurance policy. However, you may have to pay more if you’ve filed claims and your ex-partner hasn’t. There’s no one-size-fits-all approach to dividing car insurance coverage after a divorce; each pair will have their unique situation. The technicalities of separating policies will vary depending on the parties involved and your state of residence as well as your insurance provider
6. Sell Your Condo
When budgeting after divorce, you may put up your condo for sale if you no longer need it. Condos fall under the category of real property, which includes a deed of ownership. But when deciding what to do with your condo, it’s not just you and your ex-partner who matter. Your specific condo’s bylaws may contain restrictions that apply to sales or transfers.
If you’re co-selling with your ex-partner, you must give your agent pertinent information per your divorce agreement. You should mention any real estate-related conditions outlined in your divorce order. These may include the listing price and when to drop the price to a specific level, the spouse the court has designated to act on the couple’s behalf, or specificity on who to cover for repair costs.
When budgeting after divorce to sell your condo, some factors will help your sale. For example, the time of the year. The ideal time to sell a house is typically in the spring; the worst is during winter vacations.
For condos, you’ll get the best price just before the peak tourist season if your property is in a popular tourist area, such as next to a beach or ski resort. Consider playing the waiting game to earn additional money if seasonal factors affect your locality.
To fetch the highest price for your condo, repair it before staging it. To market it further, highlight the amenities of the building as a major selling feature. For example, if you have swimming pools, a garage for parking, a gym, and a lounge or a conference room can be displayed on the advertisement features.
7. Get An Affordable Plumber
When you’re budgeting, consider your regular maintenance projects and repairs such as simple plumbing. You may need a more affordable local plumber now that you have to live within a smaller budget than when you had a spouse.
Retaining your original local plumber can be wise since you already have a rapport with them. You can thus negotiate for a discount or a payment plan. It’s also easier to trust them because you have worked with them before.
Alternatively, you can shop for materials and do simple repairs as DIYs. This will help you cut the cost of having to hire a plumper. Don’t bite more than you can chew, however, for you may end up causing more damage than already exists if you’re not well-versed in what you’re doing.
8. Think About Your Kid’s Schooling
When budgeting after divorce, your child’s care, upkeep, and necessities should be a top consideration. If your child was attending a private school, you’ll need to evaluate how capable you are of continuing to support them as per your agreement in the divorce settlement. Moving your kids from one school to another, like private schools to public, shouldn’t be taken lightly. Unless there have been cases of bullying or the primary caretaker is relocating, try to maintain your child’s environment because the divorce is already a big change for them. Having a sense of familiarity in at least one aspect is good for them.
You and your ex should discuss how to divide the cost of tuition. Look at your finances to determine how much you can contribute to your child’s education. It might be split 50/50 or not. The two of you should bargain and settle on a cost-sharing arrangement for your child’s private school tuition during the divorce process. If the parents are unable to agree, the court will decide who will be responsible for covering the costs of the child’s private education after the divorce, taking into account the child’s best interests, each parent’s financial resources, and any applicable rules or laws as per different states.
9. Consider Your Dog
Consider getting your dog into a doggy daycare service. This will especially be helpful as your doggy may be dealing with separation and anxiety from all the changes that come with the divorce. If you were used to leaving your doggy home and had a stay-at-home partner, now you need to get your dog into a daycare.
This will dig into your pockets. Doggy daycare services frequently provide discounts for existing clients if you purchase certain packages. As a newcomer, you can ask if they have newbie offers and take them up on that.
Some other simple tricks to save a dime would be pairing your doggy with a friend or family member to get a discount for multiple pets. Also, you can avoid extra costs like cleaning teeth or clipping nails by grooming your doggy on your own on the weekends. Although a tad inconveniencing, you can save money by picking and dropping them off yourself and providing food for your doggy instead of getting it from the facility. You can also look into some low-cost doggy daycare programs.
A divorce is a major life-changing event, and the financial fallout may be devastating. You, therefore, need to plan ahead to have a smoother transition into your new life. After dividing your assets and settling the finances, you’ll need to sit down and reevaluate your monthly budget. Consider your current income and the changes that come with the divorce to create a new flexible budget.
Avoid impulse buying and prioritize your basic necessities. Give yourself a grace period to recover from losses and regain your financial standing. The tips will give you a leg up in managing your new budget to better to accommodate all your needs.