- Relying too heavily on the pre-divorce budget, which may not be realistic post-divorce. When you make your post-divorce budget, be sure to account for fixed, variable, and annualized expenses. Fixed expenses are those that are the same amount every month, such as a mortgage payment, a car loan payment, or a gym membership. Variable expenses are those that are incurred regularly but the amount varies, such as utility bills, grocery purchases, and medical care. Annualized expenses are those that are incurred at some point in the year, or more than once, but neither monthly nor in a consistent amount; examples include car maintenance, vacations, and home repairs.
- Assuming that each party’s expenses for a particular category will be equal. It may be tempting to estimate the same amount as the other spouse, either because it’s easier than taking a contemplative approach or because you believe that not stating the same expenses would allow one of you to have a higher standard of living than the other. You should be thoughtful about your expenses, irrespective of the other party’s list.
- Underestimating irregular or long-term expenses (such as car repairs or home maintenance). This is one of the most difficult things for Matthew’s clients to be willing to do. Let’s face it — no one likes to see their budget continue to climb as they add line item after line item. However, it’s important to be realistic. Even if you did not incur a particular expense in recent memory, what are the chances that your car will always be problem free or that you will not need to repair or replace anything in the house? Not likely. Matthew will help you come up with reasonable estimates.
- Double-counting some expenses that may appear to belong to multiple categories but should be reported only once. It’s difficult to budget for toiletries, say, because you probably just put them in your shopping cart at the supermarket with your groceries. They may be rung up at the cash register along with your entire purchase, so it may be difficult to isolate the cost of just that line item. In such cases, what’s important is to ensure that the expense is included somewhere on your budget, only once — not omitted and not duplicated. As long as you know you’ve accounted for it someplace on your list, the specific category where you’ve chosen to list it does not matter too much.
503 Family Law
Family Law Informational Resource of Portland Divorce Mediator Matthew House, J.D.
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This blog is an extension of www.mediatormatthew.com, the main mediation website of Mediator Matthew M. House J.D.
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My name is Matthew House, and I’ve mediated over 750 divorces and 300 other types of non-divorce conflicts since 2005. I would be pleased to help you with your divorce, legal separation, or modification of an existing judgment. Please feel free to visit my mediation website, www.mediatormatthew.com for more information about my mediation practice.
503 Family Law 