Lifestyle Planning Before and After Divorce: Don't Use the 'B' Word
Gathering current expenses to determine future cash flow needs can help answer the question, "how much do I need?" and will add to one's ability to move through the divorce process with knowledge, says Judy Barton, MLS and senior client strategist for BNY Mellon Wealth Management.
April 19, 2022 at 03:38 PM
5 minute read
CommentarySimilar to the word "diet," the word "budget" often creates a negative reaction. It connotes restrictions or an "I can't" mentality. Rather than using the "B" word, consider calling a budget "cash flow needs." For those contemplating divorce, knowing how current spending and lifestyle translates into cash flow needs is critical. "Knowledge is power," and knowledge of cash flow needs provides just that.
Determining cashflow needs is a key consideration when determining what path to pursue and working through the division of marital assets. In my experience, there is not one easy-to-follow formula to the answer the question, "How much do I need to maintain my lifestyle post-divorce?" It is an exercise that should be a part of the divorce process, and can also help inform the decision to divorce. Starting this exercise early provides the data and confidence needed to feel safe and secure post-divorce. So where does this process begin?
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