Learn how to use a budget tracker to organize your income, expenses, and debts, helping you prepare for mediation and make informed financial decisions during your divorce.
Instructions for the Budget Tracker
The budget tracker is a simple, effective tool to help you organize your finances and prepare for mediation or settlement discussions during your divorce. Follow these steps to use it:
Step 1: Download the Budget Tracker
Save a copy of the spreadsheet to your computer or cloud storage to edit with your information.
Ensure the file is accessible and backed up for future reference.
Step 2: Gather Financial Information
Collect details about your income, expenses, and debts.
Include all sources of income, recurring expenses, and marital debt obligations.
Refer to recent financial statements, pay stubs, and receipts for accurate data.
Step 3: Fill in the Income Section
Go to the Income Columns:
General Income: Enter your regular monthly income (e.g., salary, rental income, freelance income).
Incoming Alimony and Child Support: Test different potential amounts to see how they impact your budget.
Child Support Add-ons: Include extra costs your spouse may reimburse, like tuition or healthcare.
Ensure all income is converted to monthly totals.
Step 4: Complete the Expenses Section
Go to the Expenses Columns:
General Expenses: Enter regular costs like housing, utilities, food, and transportation.
Children’s Expenses: Add costs like school supplies, extracurricular activities, and childcare.
Marital Debt Payments: Include your share of joint debt repayments.
Outgoing Alimony and Child Support: Estimate any support you might need to pay.
Other Expenses: Add professional fees, savings contributions, or additional costs.
Use realistic monthly amounts to avoid underestimating costs.
Step 5: Analyze the Net Cash Flow
Review the Net Cash Flow column.
If it’s positive, your income exceeds your expenses, indicating financial stability.
If it’s negative, identify areas to cut expenses or increase income.
Step 6: Explore Scenarios
Use the spreadsheet to test different financial scenarios:
Adjust alimony or child support amounts to see how they affect your budget.
Experiment with various debt allocations or income changes.
Create multiple versions of the tracker to compare outcomes.
Step 7: Save a Final Version for Mediation or Settlement Discussion
Once satisfied, save a version of the budget to share during mediation or settlement discussions.
Keep backup versions with alternative scenarios for your personal use.